Gold in Head-and-Shoulders Top Formation

The streetTRACKS Gold Shares (NYSE: GLD) has done a round-trip off of last Thursday's pivot low at 66.50, which now represents key near-term support. We can make the case that all of the action carved-out during the past month represents a head-and-shoulders top formation. If the neckline support level breaks 66.50, I will get an optimal downside follow-through target of 65. However, let's also keep in mind that the sharply rising 50 DMN at 66.15 suggests strongly that a break of the "neckline" at 66.50 could find scant downside follow-through, and instead might be the next excellent buying opportunity within the larger intermediate-term bull trend. In any case, the next several trading hours in the GLD will be critical to its near-term trend direction.