BullMarketRun.ca

Gold got smacked today, falling below one support level and losing $42 an ounce to close at $1,720 with the euro zone the culprit.  Cash was King today as equities were hit hard as well.  Cracks in the CDNX are getting wider – the move since early October has to be viewed in the context of a bear market rally, and we quite possibly may have seen the climax of that rally November 8 at 1675 – just 25 points below the top (1700) of the resistance band that John has pointed out.  The Index closed today at 1599.  Bulls have to hope and pray that 1575 holds as support on a closing basis – if it doesn’t, the CDNX will be on a very slippery slope, before winter even arrives, with a 300-day moving average (SMA) reversing to the downside for the first time since immediately prior to the ’08 Crash.

As far as Gold is concerned, John’s November 4 chart, which we’re re-posting tonight, should be kept as a reference.  The volatility we’re seeing now is perfectly normal – as long as Gold holds the trendline (the bottom of that trendline now is about 1625), this market remains very healthy and bullish.  The Gold price so far this month has been range-bound between $1,700 and $1,800, and that trend may continue.  Below $1,700, there is strong support at $1,675.