by Dan Norcini
Gold shares were very strong until late in the session today when they ominously reversed course surrendering all of their early gains and closing lower on the session.
The price action left a bearish reversal pattern on the daily chart that could provide technicians with an excuse to sell tomorrow.
[…] Coming at the important resistance zone noted on the chart, the reversal pattern is more disconcerting. Notice how price failed to CLOSE above the previous high which was a Doji pattern. That reinforces the 210 level as formidable resistance.
We’ll see if we get some follow through selling to show up early tomorrow and whether or not the bulls can absorb it. Price has been hugging the rising 10 day moving average for the better part of the month of April so a big test for the bulls is forthcoming.