Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Opening
Gold Makes a Move
October 21, 2020 - (Gold Market Wire) - Gold is shedding the channel that its has held to for nearly three months as the counter-manding uptrend holds and the channel downtrend runs out of room. The chart is painting an encouraging picture for the bulls right now.
This is music to the Golden bulls ear. If it holds into the close, and especially the week, positioning will be worthwhile. We are getting another shot at the $1906 horizontal which has caused so much grief over the past 3 weeks, and its clearance, hand in hand with the channel breakout, is an encouraging sign. Likewise, we also now focus on $1910-11, a secondary horizontal support line, which have nicely cleared. We need to hold this to the end of the week to get properly bullish. We must, of course, be wary of another 'false dawn' - so let's take it a day at a time. If you're agressive buy lightly now, with a more measured outlook for establishing warranted length (i.e. technically) at the market close on Friday.
So far, so good. Let's see what New York brings.
(side note: for those who took our recommendation to establish long-term length in Corn, some three weeks ago, the pickings have been rich.
There is no sign of let-up in the food complex, whose supply chains have been destroyed. There will be much more of this going forward and core postiions should be held with an iron grip, on a 3-4 year time horizon, in wheat and corn. Also, a rising food complex is music to Gold's ears.