Filed under: Trader Dan Norcini
Dear Friends,
Considering the various crosswinds blowing in today’s session, gold performed admirably, shrugging off Dollar strength and a bout of general commodity sector selling by the hedgies and their infernal algorithms. While it did not set another all time record high, it did manage a record CLOSING PRICE.
Similarly, silver’s performance was impressive as it scored another new high for the year posting a print of $21.265 before settling down a bit from that level.
Later on in the afternoon electronic session, weakness in the broader stock market pulled the HUI down into negative territory and that had the effect of engendering some selling in both of the metals.
The HUI is butting up against sellers near the 512 level who are attempting to hold it back from reaching the critical resistance level of 520. It continues to stair step up nicely and if the pattern is consistent, could set back down towards 496 or so where it should see some buying appear. We will wait and watch developments.
The Dollar put in a dead cat bounce bouncing some due to the extremely oversold nature of the chart as well as receiving some safe haven bids and light short covering. It would have to get back above 82 to convince me that any move higher is anything more than a blip. It is trying to hold an important support level at 80 so the bulls are trying to salvage their positions by digging in a bit here. We’ll see how they fare.
Time is in short supply for me today so the comments for now are short.
DAN'S CHART:
http://jsmineset.com/wp-content/uploads/2010/09/September2310Gold.pdf
Considering the various crosswinds blowing in today’s session, gold performed admirably, shrugging off Dollar strength and a bout of general commodity sector selling by the hedgies and their infernal algorithms. While it did not set another all time record high, it did manage a record CLOSING PRICE.
Similarly, silver’s performance was impressive as it scored another new high for the year posting a print of $21.265 before settling down a bit from that level.
Later on in the afternoon electronic session, weakness in the broader stock market pulled the HUI down into negative territory and that had the effect of engendering some selling in both of the metals.
The HUI is butting up against sellers near the 512 level who are attempting to hold it back from reaching the critical resistance level of 520. It continues to stair step up nicely and if the pattern is consistent, could set back down towards 496 or so where it should see some buying appear. We will wait and watch developments.
The Dollar put in a dead cat bounce bouncing some due to the extremely oversold nature of the chart as well as receiving some safe haven bids and light short covering. It would have to get back above 82 to convince me that any move higher is anything more than a blip. It is trying to hold an important support level at 80 so the bulls are trying to salvage their positions by digging in a bit here. We’ll see how they fare.
Time is in short supply for me today so the comments for now are short.
DAN'S CHART:
http://jsmineset.com/wp-content/uploads/2010/09/September2310Gold.pdf
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