July 5, 2021 - (Gold Market Wire) - The close going into a fourth of July weekend was always going to be a tenuous affair, but now that it has past, we are opening up strongly this European a.m. Our horizontal resistance didn't fall on Friday, but has today. The market looks like it could run to the upside here.

So, we have traded through $26.55 and every hour/day above it should encourage a bullish posture. The 100-day moving average has been cleared which adds to the positive picture. As we zoom in we can see that clearer, but, even more importantly, the stochastic has backed off from what looked like a Thursday turn-down. The mouth is now gaping open, which is exactly what we want to see.

Our stochastic has been in bearish formation since at least May 19, and was a contributing factor to our profit-taking decision. Equally, we now can see its effectiveness in defining both the flat price down move and its recent bottoming out. All of this is sound news for the bulls. In this type of environment we'd expect New York to come in strong.

As we climb above $26.60 we will be adding length. The market looks in a good position to run higher. The bulk of the down move (in trading terms) looks like it has been completed. The US Dollar strength (as we warned) has been no impediment to the metals' progress, and the several we pointed out last week certainly appears to be a real one.

(for those wanting to review the position; we cut 50% of length taken at $26.04 for a 40 cent loss, and are 55 cents in the money on the remaining half. Slightly better than a wash. The result we have to date expounds the reason why our length was only halved and not closed. We believed a further move down was possible, but in the event we didn't get it. We got a short and shallow drop. The cut of only half kept us in the game, and, as we opined at the time the position was opened, we did consider a drop below could happen, which is why we kept it small. We advised that the position should be sized to withstand a drop. Ultimately, we increased the position too early, took our hit, but stayed in the market. We are now increasing the position at a higher level, but in a market environment that looks much more positive. Lesson? In trading - early is wrong!)