Exactly as expected in yesterday forecast, the bear had better chance than the bull. Gold was easily going down without any resistances up to the white support line once more.
Now it seems that the market really waits for the next step.
I still see gold is continue making its sideways and probably will bounce back up around this white support level. I expect this pennant can be a good path to make money.
Technically from R/S, I think this current price is a good entry for Long position with target below the Resistance Area and SL a little bit below the White Support. That will be a good RR ratio.
But always remember that market always has surprises and can't be 100% truly predicted.
That's why I must remind once more that the best way to trade is to use good money management.
Later today, we will have NFP. It becomes a matter if NFP data is much more different than expected. If it happens, we might have a breakout from this pennant pattern, otherwise the sideways will still there for some more days.
Trade well and good luck.
GG - 2013-02-01
