Gold makes another stand
Yesterday we wrote that gold and silver patterns are possibly changing. Both held support again on Tuesday and are now looking to test resistance. This does not mean it’s time to rush in a buy, this pattern suggests observation and patience because the trend is still down.
The current pattern is in consolidation with the last two days showing solid support and the possibility that the bottoms are in. The price action has turned neutral to bullish however there is still work to be done before we can determine the bottoms are in.
Although the metals have the appearance of change, we will remain short until we can confirm the bottoms are in. There are one of two things that will happen, the bottoms are in and a rally ensues, or this is false hope and the metals could continue the breakdown. Right now, it’s a coinflip.