This is a weekly chart on GOLD
Notice from the bottom graph, the sharp decline in open interest on this drop. This is a very bullish indication. When this is combined with the net long position of the commercials, we do have s setup for a rally. We do have to wait until the end of the week for this chart to see what the readings will be.
If they stay at the same levels, we certainly have to be looking for a long side entry in this market. The next step, is to drop down to the daily chart which shows an entirely different story. I will cover that tommorrow. It is a matter of your time frame in trading or investing.
Mine is fairly short term, so I need both charts singing the same tune together, and they are not at the moment. I will cover tommorrow, what I will need to see on the shorter term daily chart, to get long this market.