Gold Facing Resistance Cluster

Right now my technical work is undecided as to whether gold and the SPDR Gold Shares (GLD) established THE corrective low on Dec 29 at 148.27. What I think I do know is that the upmove so far from 148.27 to today's high at 157.02 (+5.9%) has propelled the price structure into a very heavy cluster of resistance.

This resistance is represented by the simple and exponential 200-day moving averages, the prior Sep-Oct bottoming period, and my declining shorter-term EMAs of 14, 30 and 50 days.

The resistance cluster coupled with the headwinds created by a strong USD today present some serious challenges for upside continuation of the current rally in the GLD.

That said, however, we must also recognize that should the GLD (gold) continue to climb in defiance of the above-mentioned impediments, then we might have additional evidence to suggest that, indeed, gold established a very significant corrective low on Dec 29.

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