Saturday, November 6, 2010

Gold Correction Aborted

I wrote a piece back on October 18 about gaming the next gold correction anticipating a minor one for two or three weeks at least. Sure enough, the very next day, a correction started. It seemed to be advancing properly up until the "B" part of your standard abc corrective pattern that gold has been following up until now. But then it started behaving most improperly.

As the chart shows, as we started down from the "B", the market seems to have said,"OK, forget the rest of this correction. Let's get on with it." I suspected that maybe this pull back wasn't going to make much headway going into the sea of green building on the money flow chart. There is a big difference in buying pressure between now and July, when gold did its last "proper" correction. There was, however, much higher selling volume than buying volume as in a continuing correction. But the intensifying buying pressure seems to be snuffing out the effects of these profit takers.

This looks like an intensifying climb where the pull backs will be hard to figure.

1 comment:

  1. Yes. This look like an intensifying.