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Gold Could Take a Break… and Then Hit $1450

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GLD has pulled back to the important 20 week line.

This ties to a test of a rising trendline for 2016.

Note that the last time GLD tested its 20 week m.a., it flushed it followed by Train Tracks or a 180 on the  weeklies.

That test occurred on the week of 5/23 in tandem with a turn down in the important 3 Week Chart.

GLD is currently in a different position. The 3 Week Chart has been pointing down since the week of July 25.

In fact GLD traced out a weekly Plus One/Minus Two sell setup on the week of August 1st and has been trendling down since. This week is the 7th week since that early August test of the rally high for 2016.

GLD made its high for the year in early July. 90 degrees/days ties to early October. It is going to be important to observe the behavior here.

A failure to turn up with authority could indicate more work to do into early October before what I think will be a rally up to 1425-1450.

A 2 week rally into early October could put GLD in the Minus One/Plus Two sell position again.

Of course, as you recall, early October ties to the end of the Gann Panic Zone on the SPX which is 55 calendar days from the August 15 high.

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