GLD Update

While GLD knifed lower in  the last two days it is within the context of a Wave 2 decline following the advance from late June.

Pulling back the lens to look at the weeklies shows GLD is testing the lower rail of a rising trend channel since last November’s low.

This channel allows us to see an intersection of resistance at the late April high (red).

Extending that channel shows a key pivot which will trigger a Rule Of 4 Breakout on trade above the red trend line.

Notice the intersection of the rising blue trend line from the May 2019 point of acceleration and the declining purple trend line from the March 2022 all-time highs.

We are in the 540 degree/day region from the March 2022 peak and it ain’t a high.

Gold has a history of running up and spiking into highs in August.

That’s what it did in August 2011, a Fibonacci 144 months ago.

Moreover, GLD is in the WEEKLY Plus One/Minus Two buy position.

But it needs to hold in here, albeit the 3 Week Chart could turn down.

The next week is going to be critical.

Below is a monthly GLD show the big August/September 2011 top.

Notice the major inflection point at the intersection of the declining purple and rising blue trend lines.

Extending the purple trend line gives a Ghost Line which GLD struck and topped in late April 2023.

Now notice the green trend line across triple tops.

Breakage above those triple tops will see an historic explosion within the context of a 12 year Cup and Handle.

Let’s drill down to the dailies.

As you can see GLD is carving out an important turning point into the intersection of rising trend line from November and a shorter term declining trend line.

We are 270 days/degrees from the November low today.