Although the streetTracks Gold Shares (GLD) pivoted off of 64 this morning after hitting a near-term rally peak at 65.23 on Friday, my pattern work regards all of the strength from the March 5 low at 62 as a recovery rally and not the initial upmove of a new upleg. If my work proves accurate, then after this rally is complete we should expect another decline that retests 62. For the time being, my next optimal target zone should fill the gap area at 65.30/80 established on March 2.



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.