Last week, GLD (GOLD ETF) formed a triple top pattern and broke below its short-term uptrend line. This break down favors a further down move.
The 130-129.50 range is likely for the next downside target. Right now our stop loss is 135.75 area, and we intend to hold last week’s remaining short positions for the next downside target.
Daily momentum indicators suggest that GLD is still in early stage selling for the short term. So far there is no selling signal for the long and intermediate term.
The volume for the declining move remains relatively light on a weekly basis.
A short term correction down to 130-129.50 range is what we expect for the next move. We then need to see how price reacts to the 129.50 line to assess if there is the possibility for a bigger correction.
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GLD daily chart