Gold (GLD) in Bullish Structure

After hitting a new recovery high at 64.59 last Thurs., the GLD has pulled back to today's low at 63.36, which also coincides with its 6 week support line. Thus far, today's action argues that the support line has contained the pullback, and that perhaps the weakness is finished. Well, maybe not. The juxtaposition of the 4-hr RSI suggests strongly that the GLD's pullback may only be partially complete, and that the price structure might "need" to loop down to retest and break 63.36 (into the 62.60/30 area) prior to embarking on the next upleg. In either case, my pattern work argues that the action off of the Oct. low at 55.55 to last week's high at 64.69 exhibits very bullish structure, which "warns" us that more upside-- possibly acute strength-- is directly ahead (after the completion of an intervening pullback). MJP 12/05/06 3:50 PM ET (63.76)
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