Recently, I discussed the possibility of a "false breakdown" in GLD which violated key neckline support at 66.50, but failed to generate any downside traction because of the power of the rising 50 DMA at 66.15. Judging by today’s price behavior, perhaps such a scenario is exactly what is developing. At this juncture, the GLD needs to hurdle and sustain above 67 to trigger initial confirmation that an important pullback pivot low has been established at today’s low of 66.14, and that a new upleg has started.



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.