Gold Mid Week Update

The gold market has rallied to the 1440 area as we arrive at mid week. Resistance is the 1440-1444 area --- and the top of the RED Channel line. Earlier this week --- after spending a week at the upper dotted trend line --- gold broke out higher. If there is to be a pullback this week it should begin this afternoon ---- and run into Thursday or early Friday morning. With the payroll report due -- gold has a tendency to pullback a bit as we near it ----and resume its uptrend in the 12-24 hours before the report. That has been the trend of the last few reports. Support should be strong in the 1420-1425 area. ANY CLOSE ABOVE 1442-1444 WOULD BE additional evidence that the SHORT TERM TREND RALLY could extend towards 1475 and could cancell any pullback. WATCH SILVER ALSO --- it is nearing key RESISTANCE for the week in the 34.95-35.08 area. Here too a pullback could be seen into late Thursday at the 33.50-33.75 zone. In Summary --- pullback or not --- the uptrend is still intact as long as price remains inside the RED CHANNEL LINE. It will take a close below the UPPER dotted trend line at 1396 to neutralize the uptrend. Watch 1440-1444 as resistance and 1420-1425 as initial support.

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