Gold Mid Week Wednesday

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In our last update Tuesday night we discussed the 1423 area and thus far that has been the low for Wednesday. Once again price touched the lower channel line but held. We also discussed that the 1434-1438 area as the key to higher price and today's high at 1436 was not able to push thru the 1438 area. A pullback to the lower red channel line is underway as we approach the close. The trend is still up ----- but a break below 1420 could lead to a test of the upper dotted trend line at the 1403-1408 area. The market has tried 3 times now to break above 1438 --- so a more cautious stance is warranted on the very short term. Watch that 1438 area ----- price needs to hurdle it soon or the pullback will finally probe below the lower red line.