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Metals: April PPI Indicator

So, when we take a look at the gold market because this is all about the metals, we're in something of a stall, that's the way to look at it on a weekly basis. On the daily bar, you can see right now that you have an uptrend; higher lows, higher highs. The market got over the 18-day moving average of closes and fell back to support until it takes out this low right here and we can even take a look and see what that number is. I'm not going to go to the weekly chart, I did that over the weekend.

But $2311.40, well, the trend remains up. So do I think that people are buying it here with stops under that? I do. Unfortunately, that type of stop in this market in dollar terms is over $1000 on a regular contract. Well over it – $2000, it's too much money. So either do the many contracts and try to build or you wait for a better chart pattern as I see it your call. When I look at the Bollinger Bands, we haven't been to the upper band. We did hit the lower, we held it and we rallied off of that. As I said, a bear market rally, we had the pop last Friday and then right back down to re-challenge the 18-day average today, that's still bullish action on the chart.

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