Gold Technical Analysis September 27, 2011

The gold markets fell hard on Monday, but bounced to form a hammer at the $1,600 mark. This shows that a lot of buyers stepped in to bargain hunt in this strong bull market at the big figure. We suspected this area might produce some support, and it appears that it is going to do so now. A break of the Monday high is a strong buy signal, while a break of the low is a strong sell signal. For now, we wait to see which one happens first, but with the trend being so strong – we know which direction we prefer!

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