By: Jeff Cooper
Hit and Run Morning Stock Report: March 20, 2023
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Why GLD Could Hit A New All-Time High In March
Tuesday morning’s Hit and Run Report, The Completion Of Golds Long Consolidation Is On the Radar stated, “Breakage thru the open gap at 178 and the Train Tracks sell signal at 180 (on GLD) suggests A FAST MOVE COULD OCCUR INTO THE END OF MARCH.”
That notion was powerfully validated on Friday as GLD blew through a tops trend line from March 2022.
It was the 4th gap to the topside in the last 6 days -- all occurring on a significant expansion of volume.
As such, Hit and Run members capitalized smartly in positions in GDXJ, AGI, MUX, UGL, GOLD and GLD calls.
The price action this week leaves a one-month Island Bottom, opening the door to an attack of the all-time high double tops from August 2020 and March 2022.
Last week's action underpins the bullish view we had throughout March that GLD was in a bullish pullback from its February 1 pivot high for a variety of factors:
1) GLD turned its 3 Week Chart back up on a gap and exploded. That’s very bullish price action.
2) This follows a turn down in the 3 Week Chart on the week of 2/13/23 that basically defined low.
3) That low occurred at a Bowtie of the 20/50 week moving averages.
4) Last week GLD eclipsed the high of the outside down week from January 30 -- closing with authority above that high and testing the low of the high bar week from the important March 2022 peak.
Not convinced? Consider that while March is not yet over, if it were GLD would have set the second highest monthly close in its history.
The highest monthly close was 185.43 in July 2020. Friday’s close was 183.77.
It will be important to see where GLD closes March. Interestingly, the early November 2022 low at 150 low where this advance started aligns with March 31.
270 degrees up from 150 is 189.
A full 360 degrees up is 203 which aligns with/vectors March 31.
Given the recent momentum, it would not be surprising to see 203 struck this month.
This would be an all-time new high in GLD and gold.
Early this week is WD Gann’s “Zero Point”, the Spring Equinox, and an important point which WD Gann used to measure Time and Price.
Today aligns with 189 on my Square of 9 Wheel so it will be important to see if GLD can eclipse this “vibration”.