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By Mike Paulenoff, www.MPTrader.com
Very interesting situation developing in spot gold -- and by extension, the GLD (streetTRACKS Gold Shares). Let's notice that the price structure is wedge-in between the rising 200 DMA (support at $859), and the 50 & 21 DMAs (resistance) as well as the March-June resistance line all clustered around $900. My sense is that if gold hurdles and sustains above $900, gold prices could rocket towards $1000 again. However, the 15 week cycle, which has proven to be a reliable turn projector, is not due for 2-3 weeks and warns me that perhaps any strength in gold here is a trap ahead of one more plunge into the cycle low timeframe- and another test of the 200 DMA? I really do not know, which is why I am on the sidelines in the GLD.
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!
