GG - September 24, 2009

It seems like our assessment of the post of September 20 was OK, and taking a defensive stance was not a bad idea.

Daily chart has sold a bit and momentum reading is around neutral levels. Price is close to 39 level of support the we had identified a while back.

As you can see, and I have explained before, I am following two very different counts on GG. One bearish and the other bullish. I am still undecided.

As long as key support levels hold, one might side with the bullish alternate. We have so far had Two bounces off of support around 39.

Yesterday, shortly before the close, price decline was arrested a tad below 39 and bounced up.


Volume into the final drop of the day and the volume of the bounce were good. That might have been a short term capitulation volume leading to at least a another bounce off of support around 39.

If I wanted to become adventurous, I would take some of my hedges off and/or buy some more to play a short term bounce

If, on the other hand, I wanted to play it safe, I would monitor to get a short term trend change to the upside.

There are two gap areas on the 15-min chart above. There is a clear channel. Those should be good enough as short term guides for now.