By Mike Paulenoff, www.MPTrader.com
No, I have not taken gold and the streetTRACKS Gold Shares (NYSE: GLD) off my radar screen, but I have to tell you that I do not have a high-confidence directional call right here. The pattern carved out in the GLD off its 11/08 high has taken the form of a large coil that exhibits a series of lower-highs juxtaposed against higher lows. Unless or until the GLD breaks key coil support at 77.00-76.80, my work argues that the overall pattern is bullish, and will resolve itself in a powerful thrust to the upside to new high territory in the vicinity of 85.00. However, should 77.00-76.80 break, the pattern will morph into an intermediate-term top that should trigger downside acceleration towards the 72.00-70.00 target zone. With all of the above in mind, I would rather watch from the sidelines for some additional technical "clues" to provide the confidence I need to enter the next directional position.