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Is this gold breakout legit yet?

Posted by MC on Jan 31, 2009

Here’s my view. Gold mini did break the upper trendline on the channel which is bullish. I weigh the horizontal support more heavily though, because through volume and price action you can see where supply is likely to enter the market and slow or kill momentum. If the trendline tests and has low selling volume or a wild bounce with a long wick from a recovery bounce I’d consider this a buy. I need another day of action to determine whether they dumped into this supply zone or not. My hunch is the channel break speaks for itself.

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