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Gold had a very bearish day today, dropping over $30 an ounce in NYMEX trading. As we had recently pointed out, the shooting star signaled short-term weakness, with support being $1400. The bar has managed to break below that, and as such has to be taken seriously.
The bar slammed into the $1,380 support level, and that would have been our first target if we were selling. However, the level held, and as such should be considered a trigger. Anything lower than that level is to be sold. As far as buying this market at the moment, with all of the risks out there presently, it would be hard to. Perhaps another day or two of severe volatility is in store before we can make solid buying decisions.
More March 16, 2011 Analysis:
