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Gold Still Looks to be Under Selling Pressure

When we look at the gold market, one of the things I told you that I expected is when you're over an 18-week average and you come back often (I wish I could tell you, it's all the or time but it's very often), the market will stall there figuring out what the next move is. When we look at the daily bar chart today, you had an outside day to the downside.

Now, I believe that outside days are telltale signs. They're either a continuation pattern or assign that something is ending. Now, let's first discuss the sign something is ending. We've had a short-term rally that has culminated maybe with that outside day down. 

...I can tell you, that if you take out today's highs tomorrow or the day after it's a signal, you probably want to even move higher. So this is going to give the bears an area that they'll look at on the chart. The market did not take out previous highs. It's right at the 18-day average.

In my morning subscriber video, I said, 'Wouldn't surprise me if the bears sell here, put a stop over the recent high and they look to see if you get back into these lower moving averages.' I didn't like the risk-reward on the trade, but that doesn't mean you're not studying the pattern.

Now, if you take out that high, where could you be going? Then it's the Bollinger Band possibly, $2075, but what would make the market pick up there is what I'm wondering and it would have to be something terrible going on in the Middle East. 

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