My work on spot gold argues that a corrective period is nearing, which should present an opportunity for re-entry into GLD in the 62.50-62.00 support target zone.  Gold has climbed to today's new high at $678 amidst a glaring momentum divergence.  In addition to the momentum divergence, my pattern work argues that the most recent upleg off of $606.60 to $678.00 is complete.  If that proves to be the case, then gold prices are due for a rest, or corrective period, that should press the metal back to $625 support area prior to the next upleg.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.