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The gold markets soared above the $1700 level on Thursday, but did selloff towards the end of the session in order to form a shooting star. While this would normally be a strong sell signal, it is more and more obvious to us that gold markets will continue to climb over time. Because of this, we are looking at this as a potential opportunity to buy the pullback.
We think that the gold markets will hit $2000 long before they had $1500, and as such we are only buying. We think that any fall from this area should be bought once support becomes obvious. Strong support should be found at the 1006 or $40 level, as well as the $1660 level, and possibly even the $1680 level. Because of this, we are more than happy to buy supportive candles. Also, if we manage to break the top of the shooting star this is a massively bullish sign as well. As for selling gold, we aren't even considering it until we are well below the $1500 level.