I am a trader, so I look for price patterns in the marketplace. There are no patterns that are in my playbook setting up in Gold right now. Since we are in a trading range, I would require a breakout back to the upside, and then play the first pullback of it. If it stays in a range the only other play to make is to buy against the lows of the range, with a stop just underneath.
That is not a trade I would do based on the big picture bearishness that would be in place if we test that $574 area. From a traders standpoint, this market is in no man’s land right here. If you visit my blog you can see a buy pattern that was set up that was never filled due to this selloff we just had. It is from 8/14/06 and is the fourth or fifth one down on the left.
It shows a pattern that was setup as a buy that the price did not rally enough to fill the order, it was a buy stop above the market. http://iamafuturestrader.blogspot.com/
