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Gold Pullback Doesn't Inflict Meaningful Technical Damage

Gold Pullback Doesn't Inflict Meaningful Technical Damage
By Mike Paulenoff, www.MPTrader.com

No, the gold and SPDR Gold Trust ETF (NYSE: GLD) markets have not provided much in any sort of hedge in the past week or so. However, looked at from a relative strength perspective, the enclosed chart pattern of the GLD clearly remains the inverse of the major equity market ETFs. Let's notice that the GLD has pulled back about 7% from its Feb 20th high, but has not inflicted any damage to the underlying chart structure. In fact, the GLD has pulled back to its mid-Feb upside break point, in the vicinity of 90.00-91.00, which thus far has contained the selling pressure. From a near-term perspective, the GLD will have to press and sustain beneath 87.50 to begin to inflict meaningful damage to the enclosed uptrend (channel) pattern. Although my near-term work leaves open a press into the 90.00 area from here, my intermediate-term pattern work indicates that thereafter the GLD should embark on another upleg that hurdles 98.99 on the way to new highs above 100.44.

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