November 8, 2011 (Tue)

• Gold closed the outcry session up 0.2%, just shy of 1800; but prices closed much lower in the electronic session - around 1786.
• Momentum remains up but the CCI is beginning to roll over from an extended overbought condition.
• Prices initially crossed the 1800 level but eventually failed, keeping this resistance level intact.  The next resistance area above this is at around 1815-1820.
• Support is first the 5-day EMA at around 1774 and then the 20-day EMA at around 1726.
• Trade for Wednesday: possibly a quick-term short trade, if momentum stalls and prices fail the 5-day EMA.  I will post if I do initiate this trade.  Otherwise, entering long is still high risk.  If prices sell off and go quick-term oversold, then this would present a long entry, which is currently the better way to go.
• The last trading opportunity would have been November 1, on the long side.