The gold markets rose a bit for the session on Thursday, bouncing from the recent plunge that the markets suffered recently. The candle for the day is a positive one, but in light of what we have seen recently, it is hard to think of it as a signal to buy this market. The $1,650 level is acting supportive, but we will need to see more stability and signs of positive motion in order to get long of the market at the moment. These plunges happen from time to time, and as a general rule the best way to play them is to let the market calm down before buying. This has been what we have been talking about recently, but haven't got the follow up action in order to actually buy. The trend is still up, so we don't want to sell, but in the meantime will more than likely be choppy, so we wait for a few sessions in order to buy on strength.
Gold Forecast March 16, 2012, Technical Analysis
Gold Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3