Apr 24

Gold's Near-Term Uptrend Still Intact

by Mike Paulenoff, Tue April 24th, 2007

Although the streetTRACKS Gold Shares (NYSE: GLD) was not able to spend much time above its Feb high prior to rolling over into a correction, the weakness thus far has NOT inflicted any meaningful damage to the near-term chart pattern. Let's notice that only a break that sustains beneath last Thursday pullback low at 67.25 will violate a prior low -- the first time this has happened since the March 5 low at 62.00. It is for that reason that we must take such a break of 67.25 seriously, because it could very well be the first warning signal of a more substantial period of weakness for the GLD. My pattern work is warning me that a break of 67.25 likely will trigger additional weakness that presses the GLD towards an important test of its October 2006-present trendline, now at 65.10. Having said all of the above, the ability of the GLD to hold above 67.25 will keep the near-term trend intact and dominant.
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Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!