- Gold has gone back and forth during the trading session here on Tuesday as it looks like we are running out of momentum at the moment, but it's worth noting that we fell pretty significantly and then turned around.
- So maybe that was enough to get people interested in buying gold. I don't know. I do recognize that the $3,800 level underneath should continue to be support. And even if we break down below there, the $3,700 level is a floor followed by the $3,600 level with the 50 day EMA sitting right there as well. So,in other words, even if we do pull back and quite frankly, I hope we do, it's time to start buying gold on the cheap. That is my goal to find gold cheaper if I can do so.
Selloff Done?
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We did get a little bit of an attempt on that during the early Tuesday session, so maybe that was it, we'll just have to wait and see. But the market is going to continue to go looking at the $4,000 level. The $4,000 level, of course, is a large, round, psychologically significant figure that a lot of people will pay attention to. But I would also point out that perhaps the ascending triangle that we broke out of a measured for a move to the $3,800 level, we've broken that. And now the market is trying to figure out whether or not we are going to have enough momentum to continue going higher. While I do believe that we will hit the $4,000 level sooner or later, you have to keep in mind that it is a little bit of a stretch. We have to get past the $3,900 level, which has a certain amount of psychology attached to it, but obviously 4,000 will be a big headline number that everybody's looking for and reacting to. So, I think, I think we don't necessarily just break right through that. It does look like a target between now and the end of the year though, assuming that it even takes that long. Again, pullbacks are buying opportunities. I don't even think about shorting gold until we get below the $3,400 level. We are nowhere near that right now.
Potential signal: If we pull back to the $3800 level, I am scaling into this market, with a target of $3900, and the stop loss being at the $3780 level.
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