April Gold on Monday-Tuesday ~ Can't Trust that Day

The summer highs in 2010 were set on Monday's. The highs in Nov, Dec and Jan were set in the first half of the month on Mondays and Tuesdays on Tues Nov 9, Tues Dec 7 and Monday Jan 3. Today is Monday March 7.

Open interest has plunged 20% since peaking in November 2010, thus not supporting this latest move to new highs. The intermediate trend remains bullish with all trade above its one month average at 1388, but only cautiously so.

Meanwhile, April Gold failed to sustain a trade above the March 2 high at 1440 this morning and triggered a short term sell signal on the 5x5 point and figure chart coming back through 1440 to the downside this morning. Resistance on the 5x5 point and figure chart is now to be found at the upper volatility band at 1446 near today's highs. A failure on Tuesday to extend the strength seen overnight could trigger another short term sell signal on the point and figure chart.

Short term support is the lower volatility band at 1343, which is the 2010 year high for April gold.