The opportunity to prospect the Long side of the Gold market may have presented itself with a recognition of the BlueLine at 1062.0, the low of 11/18/2015. The market is oversold with positive divergence with the CCI and indicates to us that a period of short covering, after a protracted down move, may be possible. We have a down Trend Channel that could be in danger of having the 1st level of deviation violated on a close above 1074.60. We also have a Seal Line from Yesterday’s low that could provide additional confirmation that a near-term low is in place. First Target would be the .297 retracement, allowing for a favorable risk/reward situation. A close below 1062.0 may signal that the sell-off is not yet complete, and lower prices could be expected.
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