Gold Retraces Gains - Market Analysis for May 16th, 2007

The commodity complex is getting hammered today, which has pressed the streetTRACKS Gold Shares (NYSE: GLD) beneath its 8-month trendline at 66.15, which triggered downside follow-through to 65.52 so far. Let's notice that 65.38 represents the 50% retracement level of the entire prior upleg ... so if the GLD upmove is to be considered the start of a new bull leg, then the correction from the 4/20 high 68.73 should find strong support in and around the 65.50/20 area in the upcoming hours.