Today legendary Jim Sinclair’s chartist, Dan Norcini, told King World News that fresh gold shorts suffered large losses in yesterday’s trading. Norcini said massive bids came into the market as gold crossed $1,640, volume spiked and the shorts were squeezed. Norcini stated the buying which came into the market was intense, and caught many market participants off guard. Here is how Norcini described the gold shorts getting mauled: “The move in gold seemingly came out of nowhere yesterday. Gold had been down earlier in the session when a huge bid came into gold at the $1,640 level and that took out the shorts at $1,645.”
Dan Norcini continues:
“Earlier in the trading session when gold stabilized near the $1,635 level and pushed back through $1,640, somebody came in, out of nowhere, with huge size on the bids and there was a massive surge in volume. This took the price from $1,640, all the way up to $1,660.
So gold moved $20 very quickly, in roughly 30 minutes. It was a sharp rise in gold. There was a little bit of hesitation there and then another surge came in and took gold to $1,665.
From a technical perspective, they pushed out a bunch of brand new, fresh short positions. You might recall that last week there was a lot of selling which took place in gold as it fell through support at $1,640….
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