Comments: Gold broke one short term uptrend yesterday. A retest of $590 will be next and it's unclear whether that will hold. Holding $590 will be crucial in deciding whether or not I remain short term bullish or not. Failure at $590 would mean that we see $570 again, and probably $550.
Comments: I was asked by one reader of yesterday's entry titled "Ideas for Energy Trades" about GeoResources, Inc. (GEOI), a natural resources company, which engages in the exploration, development, and production of oil and gas in North Dakota and Montana. I'd have to say that the chart looks risky unless GEOI can regain $6 in a hurry. The most troublesome aspects are a possible sloppy head & shoulders pattern the neckline of which was broken at $6, as well as the fact that there has not been any panic selling washout on high volume. It's all come in drips and drabs, with buyers showing no real effort to reverse the downtrend. I'm bearish on the chart unless it strongly reverses back above $6 .
Sentiment: Concerned. Would turn bearish again below $590 Gold.
Last week's Gain/Loss: +4.3% (First gain in 3 weeks, finally)
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