Thursday, February 26, 2009

5:49AM PST THIS RALLY STALLS TOO, NOT A GOOD SIGN FOR MOVING UP


Gold moves a little higher and stalls. You
could buy into this pull back for a quick profit,
but I don't think gold is going to spike out of here
right now.



Gold may put in a trading range here for a while

and then fall lower, unless this last burst can spike

much higher. The volumes are fairly good, but I'm

sure there is plenty of selling pressure ready to pounce

on the price.

If gold does succeed in going higher, the shorts will

start covering and that will drive gold even higher,

but only so far, as profit takers will pile in and pull

it back down. Never chase this market. Make it

come to you.