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Dollar Down Into Key Support Area, If it Slips Might Fall Another 50 Pts

So as we come back to the gold market, you can see the bat on the weekly charter shaped up, just where I thought it might, which is on a closing basis – the $2023.90 level, which is the 18-week moving average of closes, but that's a weekly chart of just closes.

When you look at the daily [chart], you can almost see that the market from this peak dropped and came back about halfway and it just sort of sitting in between the two areas, right there. The pattern is bullish in that you have higher lows and higher highs.

So until you take out this low over here which was last Friday's low, I'm of the opinion that the market is fighting for an upward trend against the 18-day average of $2037.50.

You don't want to see $2025.40 taken out. If it is, it doesn't start a downtrend, it just wipes out the chance of an uptrend at this point in time. Should the market be successful and try to lift up from here, well, $2070 – the Bollinger top – is one of the resistance areas and momentum, when you look at it, you're not in overbought territory.

So this market is trying to find its support between the 100-day average in green of $2031.90, the 18-day average of $2037.5.

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