Hi Shoppers,

Check out the candle pattern in Barrick Gold (Ticker: GOLD):

Those three green candles are called the Three White Soldiers.

The Japanese candlestick method uses military terms to name the candle formations and white is bullish, black is bearish.

The corresponding bearish formation is called the Three Black Crows.

So this is created when three bullish (green or white) candles open within the real body of the previous session, trade and close higher.

The rule says when you see this formation it is bullish, but to wait to jump in because it has already had a nice run up.

So, wait for the pull back before getting long in GOLD … I think it can trade back to at least $17.

Also, the Gold Futures Dec contract seems to have bottomed off that inverted hammer.

And finally, keep your eye on the dollar, I use Ticker UUP.

As the dollar trades lower, this is bullish for the commodities.

Trade Review

Let’s take a look at United Parcel Service (Ticker: UPS).

It looked like it was ready to rally off the hammer on Sept. 26, which it did.

But, it proceeded to close the gap created on September 23rd and then continue on in the same direction it was going.

That is another Japanese candle rule – watch for a gap close but then continuation in the current trend.

Stay on your toes out there!

Thanks for Reading … See You Next Tuesday.

Licia Leslie