When you look at the gold, it’s certainly when you go to an area chart of closes of a monthly chart, this thing hasn’t backed off. It is still bullish as can be right there.
You can see how gold keeps backing off here. In one way, but there’s another. Lower highs, lower lows, but if you take out last week’s high, that’s the key. Then you suddenly have higher lows, and that keeps you in that triangle, and that’s what I think you’re trying to do right here.
The resistance is around the $3471 level. Again, going for those highs, if it can get up there off this news. Momentum-wise, it’s not saying bye. Momentum is in a pattern here that is overbought, not embedded. And the way I teach momentum, when you have an overbought condition, you’re not a buyer in it. So I have many factors here that are interesting to talk about, none to trade off.
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