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Gold Getting Ready To Take Off

Commentaries & Views

The countdown is on for the blastoff in gold. The churning pattern that we are seeing now means only one thing -- a big move is coming. We all know that the big move can go either way, but all signs point to higher rather than lower.

The best way to play a pattern like this is to wait for a footprint confirming direction, since trying to play inside the churning pattern typically causes more frustration than profit. As we should all know by now, markets never announce their intentions.

Everyone wants to be a hero making that great call on the next move, I get emails telling me gold is going to $10,000 and others say under $1,000. I would not make either of those calls because I can only see one level at a time. For now, $1,200 is great support and $1,240 is resistance. We lean to the long side but will wait for the footprint to guide us.

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