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The February Gold contract has fired 2 Day ROC Buy, 90-10 High Continuation & Reversal, and Low Breakout Continuation Setup signals for today's trading. The 2 Day ROC Buy signal implies that today's principal trade direction should be to the upside. The 90-10 High Continuation & Reversal signal is telling us to look for morning follow through on the strong close, but to expect a likely reversal once the initial move has topped. The Low Breakout Continuation Setup signal implies significant downside IF yesterday's low happens to be taken out. Cycle Indicators (chart at right) are moving into a region where short term cyclical tops often form, but the more immediate trend is to higher prices. Odds favor continued upside in today's early trading. Buy the break of yesterday's 1684.9 high, or even earlier if price can demonstrate strength above 1678.3 level of the Daily Pivot. But stand prepared to exit or even reverse if we get appropriate price reversal patterns and/or Oscillator Divergence near important resistance levels. Our Normal High Range Projection level of 1693.3 or the Extended High Range Projection level of 1700.4 would be likely areas for such a reversal to take place, as would be a test and failure of yesterday's high.
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