Gold preparing for a big move
For the past seven trading days the gold market has been winding tighter and tighter, indicating a big move is on the horizon. In fact, since October 11th every day the pattern has would tighter and tighter. The last six days have all been inside of October 11th.
All this action means that a big move is on the horizon and the question that remains is which way. Gold bulls will make the case for the next move to be higher and the bears will say the next move is lower. In this business that tells us the uncertainty of it all.
The next move should be lower based on the downtrend that started in mid-August. The key to watch is the 1500 level in December gold futures, without a close above 1500, we expect 1480 and then 1460. In other words, we are short and will stay there until there is a close above 1500.