GLD Poised for New Upleg?
Although GLD has a long way to go to repair some of the damage it sustained during the past few sessions, there are some important signs shown on the enclosed chart that argue for a basing period followed by a new upleg in the GLD: 1) There was huge capitulation-type damage seen on Tues; 2) Wed's low at 55.05 was above the prior significant corrective low of 53.15 from 3/15/06, which preserves the series of higher highs and higher lows of the intermediate-term, 18-month uptrend; and 3) the price structure has stabilized amidst its intermediate-term RISING 150 & 200 DMA's, which is a very constructive sign that the underlying bull trend remains intact and viable.
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