Below is what we discussed last Wednesday (May 25) when SPDR Gold Shares (GLD was 116.88 as it continued to trade down from its May high at 124.59-- in route to my optimal target zone of 114.50-113.50.
As it turned out, the low in GLD so far occurred last Friday at 115.29, amid a glaring momentum divergence, which is our first warning signal that the May correction is at or near exhaustion.
That said, I am not convinced that GLD has turned up in a sustainable way. I will continue to watch for a while longer (for a lower corrective low closer to 114.50) prior to adding to my 25% long position in The MPTrader Model Portfolio. MJP 5/31/16
In that my intermediate term work argues that GLD has much unfinished business on the upside after this bout of weakness runs its course, my optimal target (Buy) window is 114.50-113.50 prior to my expectation of a powerful upside reversal that initiates a new upleg that will propel GLD to new highs in the vicinity of 130. If my analysis is reasonably accurate, then GLD has about 2.5% of additional weakness prior to a potential upmove of 14%. MJP 5/25/16