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By Mike Paulenoff, www.MPTrader.com
The near-term pattern and technical set-up earlier this morning in spot gold -- which corresponds to the SPDR Gold Shares (NYSE: GLD) for ETF traders -- pointed to an upside thrust to test key near-term resistance at $810.65 concurrent with a test of key near-term euro/$ resistance at 1.4450/80. While the euro did rally a touch above 1.4480, the rally did not sustain, which helped to thwart the rally attempt in spot gold, which failed to claw its way above $810.00. The failure of gold to hurdle $810.65 and its intraday decline to $800 could be significant technically because it argues that the pattern off of yesterday's low has carved out a wide consolidation area between $810 and $790, which could represent a new bearish consolidation area prior to another leg down to $750. In other words, $810.65 must be hurdled prior to a break of $790.
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!
