The consolidating "Symmetrical Triangle" has now morphed into a more bullish triangle. An "Ascending Triangle" is the most bullish triangle pattern and we are somwhat in between. There is a sign of increasing demand in the charts.
In the near term the 30 minute chart has a "Concrete Ceiling" at $1,620. There is a determined seller or sellers here lately. However each time a resistance level gets tested, it get's weakened. The ceiling has cracks, and needs a few more hammers and chisels for this level to become strong support. Basically from my perspective supply has been getting absorbed, and if the demand continues to deplete it, price will eventually launch.
I am looking to get back involved again and take risk in order to profit to the long side of the gold contract if we clear $1,620. I know I have no interest in a short trade as long as gold stays above $1,565.
I am paying close attention to $1,620 and keeping my powder dry until then. Keeping my powder dry means keeping my capital intact until I have greater probabilities for success. Above $1660, and I would become more aggressive.
The volume the past three days in gold has been razor thin. If there are manipulators out there, they should be able to pound this market lower. I'm not trying to give them any ideas.
(Click on chart to expand)
I do my best to tweet out my posts promptly on twitter/ScottPluschau
Members to the blog are appreciated
Comments are welcome