Bullish Consolidation for Gold

Interesting situation going on in the streetTRACKS Gold Shares (NYSE: GLD) and its relationship to its key moving averages. Let's notice that since the January 5 low at 59.66, the GLD has climbed above its 9, 50 and 200 DMAs, and for the past 3 sessions appears to be consolidating just ABOVE the moving average cluster. This action is potentially extremely constructive, largely because the current consolidation has taken the form of a Bull Flag, which should resolve itself in a thrust to the upside. Such a thrust off of the 50 DMA (et al) typically provides more power to the underlying move. In this particular instance, more power will be welcome as the GLD attempts to hurdle its major May-Jan resistance line at 63.50. If the trendline is successfully hurdled, the GLD will project next to the 68 target zone.
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