Based on this week price action in the GLD, the bullion looks like it’s making a short term bottom. A rally over the next few weeks should carry GLD to a maximum 173.76, (which would close the gap prior to the big selloff), but a more likely target would be 170.02. The correction thus far has reached 20%, based on a Hong Kong print of 1549. Our bullish view is based on 3 factors:
  1. Bullish Weekly Squat
  2. GLD registered a 10 week low
  3. Friday’s close over 156.47
When combined, these factors provide a high probability bullish scenario.
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