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Monday, August 15, 2011

Formidable Support Plateau for Gold




The SPDR Gold Shares (GLD) exhibits a series of near-term spike corrective lows that have created a formidable near-term support plateau.

The plateau from these lows at 168.65 (from Aug 11), 167.77 (Aug 12), and 168.70 (Aug 15) represents either the conclusion of a correction off the 176.75 high (Aug 10) or the end of the first portion of a still-developing, more complex corrective period.

In either case, some form of correction appears to have ended at Friday's low of 167.77, and the current rally should claw its way up to the 174-75 area at a minimum. If that level is hurdled and sustained, that will argue for a full-fledged retest of the August high.

Only a sudden downside reversal and decline beneath the aforementioned spike lows will compromise my current outlook.

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