June gold futures have been in a $1439.70 to $1482.70 balance for the past two weeks. Five of the past six days value ranges are within almost the same exact $1461.50 to $1473.50 range.
INSIDE DAY
Additionally, Monday (5/7) was an “inside day” where the range of the day was within the previous days range. “Inside days” are a form of balance.
An “inside day” within a tight five day value is “balance within balance.” When a volitile market such as gold is contained within a tight range for several days, a significant move could follow the break from balance. It is possible that the market continues to rotate around this five day value range for the next day or so, but it is necessary to be prepared for a break from this balance.
FIRST STEP
Which way does the market break from the inside day?
UPSIDE MOVE
If the market breaks from the “inside day” to the upside, it may test the $1482.70 to $1491.40 gap. Acceptance above that gap and the market may test the $1510.00 resistance level.
DOWNSIDE MOVE
If the market breaks from the inside day to the downside, look for it to test Fridays $1455.40 low. Acceptance below Fridays low and the market may test the $1439.70 balance bracket low
