The GLD ETF today gave a good signal that it really wants to reject the 129 range which is the bottom of the current extended trading range. Today’s price action in the GLD ETF is the type of helpful clue that says GLD should be able to work its way higher to the top of the range again near the 139 level and maybe even break out from there.
Today’s move was also important in that the recent 7 to 10 day volatility formed near the power uptrend line in force for several years. So not only are we getting a bounce and rejection off of horizontal trading range support, but also the multi year uptrend line which is a good sign for higher prices later this year.
The daily MACD is converging into a buy signal and volume today was robust but certainly not of the blow out variety.
Today’s move also seems to signal that the recent monthly XAU retest back to head and shoulders neckline support will hold and serve as a platform for higher prices later this year.
The gold market is still the ‘lead sled dog’ of the commodity world and does not seem to want to give up that role any time soon. In sports, sometimes we refer to a good player as being under appreciated and under rated. I think gold fits that qualification still. It is still the quiet one that just keeps on working and the average Joe just still does not seem to care about it that much. That may change at some point if gold moves into true vertical parabolic fashion.
It is still well worth keeping in mind the Marty Armstrong June 13th, 2011 8.6 year cycle model global turning point. It is unknown at this time if the gold price will align with this date along with the stock market. It is quite possible since both the commodity and equity markets still seem to want to follow each other.
June 13th, 2011 is definitely a date to keep on the calendar in my opinion to see how all markets react (or not react) to it. June to August is definitely not the strongest seasonal time frame for gold and so perhaps we do see the gold market move into an important top near June 13, 2011. I will be observing this closely and also the equity market to see what may develop near this time frame.