One of their favorite tricks is to force prices to new highs, and then reverse the trend trapping the breakout buyers. For this reason, I’d like to see gold futures close progressively above $1730 before considering a bullish breakout to $1800+.
-GDX DAILY- Above $32.00 supports a bullish breakout to a minimum target of $38.00. Closing below $26.00 would propose a retest of the $16.00 low.
Member Update (SPY)- Stocks tested the 50-day EMA and significant resistance. Since the meltdown began, stocks tend to selloff before the weekend – traders don’t like holding positions over the weekend. Since today is the last trading day before a long holiday weekend, don’t be surprised if prices drift lower into the close.
Markets are closed tomorrow for Good Friday. Monday’s open could be volatile. Markets await the next round of bad news.
If you have time, you may want to check out: Gold Forecast – The Real Bottom Should Come in May
AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For more information, please visit here.