Gold GLD ETF Pullback Doesn't Inflict Meaningful Technical Damage

By: Mike_Paulenoff

No, the gold and SPDR Gold Trust ETF (NYSE: GLD) markets have not provided much in any sort of hedge in the past week or so. However, looked at from a relative strength perspective, the enclosed chart pattern of the GLD clearly remains the inverse of the major equity market ETFs. Let's notice that the GLD has pulled back about 7% from its Feb 20th high, but has not inflicted any damage to the underlying chart structure. In fact, the GLD has pulled back to its mid-Feb upside break point, in the vicinity of 90.00-91.00, which thus far has contained the selling pressure.

From a near-term perspective, the GLD will have to press and sustain beneath 87.50 to begin to inflict meaningful damage to the enclosed uptrend (channel) pattern. Although my near-term work leaves open a press into the 90.00 area from here, my intermediate-term pattern work indicates that thereafter the GLD should embark on another upleg that hurdles 98.99 on the way to new highs above 100.44.

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By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

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