Bear

Gold - February (GCG8)

Gold has been quite unpredictable lately. It has reached heights that it hasn't been in over 25 years. Yet something is different. While oil and terrorism are playing a role once again, this time seems quite different. There is an air of permanancy to these market changes. The likelihood of Gold dropping back down into the $300's may be long gone. That doesn't mean there won't be pull backs along the way. A classic double top is forming and we have an opportunity to see gold stay below $800 for the rest of the year. There is a short term profit target of  783.8Gold is winding up for a big move. Down or up, it's hard to tell. While RSI is heading into oversold teritory at 40.563, with the potential to go lower, we have seen gold bounce off of this are and rebound upward. To add to the Gold price weakening sentiment, we can clearly see the 9 day MA head down, looking to cross the 20 day MA, the market has found support several times at the 50 day MA. Buy a put option at the 50 day MA of 795, if market does not break below, or gains strenght, turn put option into insurance and purchase long futures position.

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