From an hourly perspective of the SPDR Gold Shares (GLD), all of the action off of the Nov 8 high at 175.46 has carved out a high-level bullish coil formation, which (if it is bullish) should resolve itself to the upside in a thrust that projects into the 178.00 area next.

Only a decline that breaks this morning's low at 170.00 will compromise the pattern and morph it into a deeper correction of the up-leg from 156.06 to 175.46.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.