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Gold Wedged Between Support and Resistance
By Mike Paulenoff, www.MPTrader.com
Very interesting situation developing in spot gold -- and by extension, the GLD (streetTRACKS Gold Shares). Let's notice that the price structure is wedge-in between the rising 200 DMA (support at $859), and the 50 & 21 DMAs (resistance) as well as the March-June resistance line all clustered around $900. My sense is that if gold hurdles and sustains above $900, gold prices could rocket towards $1000 again. However, the 15 week cycle, which has proven to be a reliable turn projector, is not due for 2-3 weeks and warns me that perhaps any strength in gold here is a trap ahead of one more plunge into the cycle low timeframe- and another test of the 200 DMA? I really do not know, which is why I am on the sidelines in the GLD.
