kingworldnews.com / July 26, 2012
Today acclaimed commodity trader Dan Norcini told King World News, “Once you had the 50 day moving average in gold violated to the upside, then you had a much larger wave of short covering which began to occur.” Norcini also said, “The momentum crowd, that was waiting for $1,600 to be breached, then took over and the move has continued to feed on itself.”
Norcini also discussed a key level which “… is where you will really see the shorts panic.” But first, here is what he had to say about the recent action in gold: “The move in gold we have been seeing was precipitated by an article which indicated the Fed was going to move in August, instead of September. Some of the shorts began to cover yesterday, and as they began driving the prices higher they tripped some key technical levels.”
Dan Norcini continues:
“Once you had the 50 day moving average in gold violated to the upside, then you had a much larger wave of short covering which began to occur. You have to keep in mind that the hedge fund community has not only been liquidating longs, but they have also been adding fresh shorts.
The hedge funds had been anticipating gold would break lower, but they’ve been stymied by central bank buying coming out of the Far East. The momentum crowd, that was waiting for $1,600 to be breached, then took over and the move has continued to feed on itself….
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