No, I have not taken gold and the streetTRACKS Gold Shares (NYSE: GLD) off my radar screen, but I have to tell you that I do not have a high-confidence directional call right here. The pattern carved out in the GLD off its 11/08 high has taken the form of a large coil that exhibits a series of lower-highs juxtaposed against higher lows. Unless or until the GLD breaks key coil support at 77.00-76.80, my work argues that the overall pattern is bullish, and will resolve itself in a powerful thrust to the upside to new high territory in the vicinity of 85.00.

However, should 77.00-76.80 break, the pattern will morph into an intermediate-term top that should trigger downside acceleration towards the 72.00-70.00 target zone. With all of the above in mind, I would rather watch from the sidelines for some additional technical "clues" to provide the confidence I need to enter the next directional position.

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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