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Test in Store for Key Support in Gold

As we take a look at gold, it's still up 0.66%, $15.5 for the week. When we look at the daily bar chart, we're in a distribution area again. Now, let me explain that; it still has the pattern of higher lows that have been in place but suddenly you have a high here and a peak here, it has a lower high.

So like a triangle, you're dropping there and then the bottom comes in. You form a wedge and that's what this market is doing now – and it's trying to figure out what its next move will be.

In terms of moving averages, you're still over the 18-day moving average of closes. To get down there right now you'd have to break the uptrend and turn into a downtrend. But remember, when I have the bias up and I define bias as the relationship of the current price to the 18-day average. When the market is over this, even if I got sell signals on the swing line, I avoid them because it's most likely a corrective move back to regroup against that average.

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