Gold bugs are taking an early vacation.
Gold has traded a tight range all night as we head into the end of the week. The market currently sits just below the $1,700 level. The sell off following the Federal Open Market Committee's statement cannot be ignored this week, and the failure just above $1,730 shows that the market is dealing with strong resistance.
However, the major trend line is still intact, and traders used that to find support at $1,685. Further, the selloff's failure to follow through is a positive sign for the bull camp. My swing pivot level for gold today is $1,708. This also happens to be where the 100-day moving average hits, so this will be a strong resistance pocket. A close up towards these levels will be a positive way to end the week for the bulls.
On the downside, the lowest close since early November has been at $1695.7, and a close below this level will be bearish.
So what's the take away?
Gold is not ready to make the big move, so trade it. Today I am selling the rallies against my resistance levels – and using tight stops.