Monday, December 15, 2014
Commentary on premarket gold moves
Upon seeing gold get chokeslammed in overnight trade, my reaction was the same as anyone else wwho's watched PMs these past few years: "oh, not again."
But things look better in the daily candles:
$1214 is the short-term governing EMA. We're a hair below that.
The only reason I cared about the short EMA was that gold bounced off the lower Bollinger at the start of December, then bounced off the Bollinger mean 2 weeks ago. A bounce off the short-term EMA would be it's bounced off something higher, which would mean a vigourous advance.
Another bounce off the Bollinger mean at around $1204 today or tomorrow would just mean a less vigourous advance: it'd still represent a higher low.
And maybe we can expect that as we get nearer to options expiry on 23 Dec. I don't know how much trade to expect that week, so maybe everyone fixes it this week and goes off on vacation.
Point being, there's still no threat of Jeffy Currie's $1050 price.