Gold Setting Up For A Big Breakout Test?

In late April, I wrote a chunk of analysis on Gold and its prospects for a short-term rally.

That was a short-term evaluation that hinged on Gold’s breakout over its downtrend line. It did simply that.

Right here’s an excerpt (observe Gold = $GLD ETF) – Gold costs are in a near-term downtrend. There’s a “very short-term” buying and selling wedge that, if damaged to the upside, can be constructive (see chart). There’s additionally a barely wider lens short-term wedge that has $118 as help and $123 as resistance.

It took GLD a number of extra weeks of backwards and forwards inside the falling wedge, however ultimately Gold surged over resistance. This brings us to at the moment and the prospects for a wider lens, longer-term breakout…

Be aware that the next MarketSmith charts are constructed with Traders Enterprise Every day’s product suite.

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$GLD Gold “weekly” Chart

Gold (GLD) just lately surged as much as check the February highs round $127. That’s now our short-term resistance. Ought to GLD commerce over $127, then the BIG stage of $130 comes into play.

That’s the battle that everybody desires to see. It’s the bull-bear line within the sand – a three yr worth resistance line. That is the equal of $1375 Gold futures. If we get there… it will likely be vital to look at.

Twitter: @andrewnyquist

The writer has a place in talked about securities on the time of publication. Any opinions expressed herein are solely these of the writer, and don’t in any approach symbolize the views or opinions of some other individual or entity.

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