Saturday, May 2nd
Here is Friday's gold chart with a few extra indicators added. One of my favorite indicators are called Bollinger Bands, which are included on the chart below as the green lines encompassing the majority of gold's price action. Bollinger Bands show an average gold price along with upper and lower limits of a probable trading range. This provides you with a good idea of when gold prices are "stretched" (They've gone up or down in price too fast) and are at increasing risk of reversing direction.
It's interesting to note that each of the last three pull-backs over the past month has been successively less severe than the last. Could gold prices be leveling off and getting ready to test higher ground?
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