Gold and silver prices have rallied sharply off the recent lows.
While there is no guarantee that this is anything more than a “bounce,” it is of interest to note the price formation on Gold. In particular, the Gold ETF (GLD) which is today’s featured chart.
What makes this chart so interesting is the way that it built a “cup” formation basing pattern. The right side of the cup has been built by the steady, persistent rally.
Price is now approaching the top of the cup formation (resistance). It is likely that we will see some consolidation or pulling back from there. How this takes shape will be important. Bulls want to see consolidation or a minor pullback (that leads to a breakout). BUT if we retrace more that 50 percent of the rally, then we are likely back to the sideways base building again (that will take more time before any breakout).
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$GLD Gold ETF Price Chart
Twitter: @andrewnyquist
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
