The overnight action:
From Kitco Oct. 14:
Technical Trading: Gold Bounces, But Still Confined To Bear Channel
...On the daily chart, recent gold trade on a multi-week basis has been bearishly biased, with short-lived rallies that have been used as selling opportunities. See Figure 1 below. Since the late August peak at $1,434, Dec gold futures have been drifting lower within a bear channel.
Bear channel resistance (or the top line) currently comes in around $1,318 and bear channel support (the bottom line) is seen around $1224. For now, those are the parameters for near term trade. If the gold contract were to bust higher above that bear channel resistance line, it would signal a bullish breakout, and the same goes on a break of the channel support line....MORE
Last Friday's comment is still the target:
There is no reason we can't re-visit the $1179.40 low before year end, on the way to three digit prices in 2014.
