May 16

Gold Retraces Gains

The commodity complex is getting hammered today, which has pressed the streetTRACKS Gold Shares (NYSE: GLD) beneath its 8-month trendline at 66.15, which triggered downside follow-through to 65.52 so far. Let's notice that 65.38 represents the 50% retracement level of the entire prior upleg ... so if the GLD upmove is to be considered the start of a new bull leg, then the correction from the 4/20 high 68.73 should find strong support in and around the 65.50/20 area in the upcoming hours.
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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!