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The August Gold contract has fired 90-10 High Continuation, Low Breakout Continuation Setup, and Momentum Pinball Sell signals for today's trading. The 90-10 High Continuation signal is fired when the day closes within the top 10% of the day's range. It tells us that yesterday's late day move higher is likely to continue on into today. The Low Breakout Continuation Setup signal implies significant downside IF yesterday's low happens to be taken out. The Momentum Pinball Sell signal also suggests that IF the first hour's low is broken, the market is suggesting something entirely different than indicated by the 90-10, and we'd want to be thinking on the short side. Cycle Indicators (chart at right) have moved into a region where short term cyclical lows often form. Initial odds favor continued upside in today's early trading. Buy the break of yesterday's 1589.0 high with a stop just below the 1581.4 level of the Daily Pivot. Price strength above the DP may provide clues for earlier entry. The Momentum Pinball Sell signal, on the other hand, suggests we consider the short side if the first hour's low happens to be broken to the downside.
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