The GLD ETF slightly violated the blue uptrend channel I have been talking about this week. The close was inside the channel however and the volume on today’s decline was really light. I don’t like the fact that we slightly pierced the channel today but for now it is not the end of the world.
Within this up trending channel there is a slight tendency to an ascending triangle pattern with the green dotted line being the supply line and the bottom blue line being the demand line. If I am correct in that assessment then it implies that there is not too much room left in the apex of this ascending triangle and either the pattern fails or we get a topside breakout out of the pattern which would have measurement implications within the critical upside breakout area.
There are now 2 weeks left in the month of August. So we are talking about 10 more trading days in August for the GLD. I mentioned before that seasonally the end of August would be a perfect low point for the gold market to hit. So maybe just maybe the next two weeks will be the final sell off we need to get a big more sustainable move to the upside.