Gold On the Run

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On Wednesday, GLD broke above a declining trendline for 2021.

Follow through is big validation that March 8 was an important bottom.

Allow me to explain.

GLD turned its 3 Day Chart up immediately off the low, underpinning the idea that March 8 was an Island Bottom.

As well, the first turn down on the dailies (3/12) saw a strong reversal.

Yesterday attacked the pivot of the year with a Large Range Outside Up Day (Lightning Rod) in keeping with my presumption that GDXJ and the metals were on the upswing.

See GDXJ article here from earlier this week.

The key to a sustained new leg up is 169 GLD.

You see, 90 degrees up from the March 8 157 low is 169.

Orange is 157
Purple is 169

Stocks play out in 90 degree decrements in time and price.

169 ties to the overhead 50 day moving average with the last breakdown point from a Slim Jim consolidation (flat) in the same region.

The Line of Least Resistance points higher to 169.

A 5 wave impulsive structure into the 169 region implies that any pullback that holds the breakout pivot will confirm a bottom in place and a new bull run.

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