Friday, August 3, 2007
I'm going to be interested in the COT report tonight to see how much of the shorts covered after the decline. However many factors suggest that the 2 month decline is over in Gold. First off gold is now making higher highs and higher lows. The RSI got to oversold and is now bouncing. Also notice the long tails. It appears buyers are coming in at these levels. Also notice at the bottom in June gold followed with 4 up days in a row. Remember Sperandeos 4 day rule? It sure looks like the trend has changed to up. BTW silver will follow if not lead gold.