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Keep Your Eye on EIA Petroleum Stock

In the gold market, I predicted that we would fight a battle right here at the 18-week moving average of closes and I think you'd agree that's exactly what's occurring. The market is up half a percentage point going into the Thursday trade. You can see how the market has rebounded off, that break low that it had, and in the process, you still are in a downtrend.

You still have the lower highs, the lower lows, you have to get over this high in order to break that. But here's your battleground; so the pros are probably selling against this $2039 level that we've talked about, stops over to the $2043 area back (I think it's right over there) and we'll see what it does through there.

If it drops, I don't think you look for a big breakdown here any longer. Now, I think you're looking at the $2027-2023 area and if you get over that high, you're no longer in the downtrend. So interesting chart; when we take a look at what you're doing in Bollinger Bands, they're far away from the market so I don't think they're in play...and momentum, which had gotten oversold, corrected itself. 

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