Gold fails to break resistance

Gold

Gold once again failed at the 1300 resistance level, and dropped back to 1266. With RSI at 70, it was a classic case of an “expected” reversal.

NOTE: Hima Reddy wrote on our blog, on 1st June 2017 :- GLD looks “toppy” to me

NOTE: Dave Reiter wrote on our blog, on 8th June 2017 :-
The bears are still firmly in control of the gold market. GCQ7 must generate a weekly close above 1301 in order to turn bullish on a short-term basis.

Gann For The Modern Trader Special Update: Gold (GLD)

Hi folks,

One regular request I get from my subscribers is “Do you plan on expanding markets beyond the E-mini S&P 500”? The answer is YES. It needs to be done thoughtfully and carefully for me to create the highest value analysis. Patience will be rewarded!

Meanwhile, I am publishing special updates like these to my subscribers when I see interesting, actionable price data, The “we’re at a key level” or “timing is coming in” type factors are what make it special, and a bit different from the Chart Of the Week that I used to distribute back in 2016.

The GLD chart is calling out to me today for a few reasons. The last time I wrote about it was in my final Chart Of the Week that I published on December 2, 2016. I’ve temporarily posted that report in the archives of the Members Only section, which anyone can access by subscribing to a FREE 30-day no obligation trial to my work:

https://www.himareddy.com/gld12022016/

GLD 6.1.17 weekly 1029 am

Chart: SPDR Gold Trust (TradeStation: GLD / June 1, 2017 / 10:29 AM Eastern Time (U.S. New York) / DAILY CHART SHOWN

GLD looks “toppy” to me for these reasons:

  • TIMING based on observations back to last August show the start of every other month (essentially 60 days) capturing trend accelerations or reversals in the short-term.
  • PRICE is backing off from a resistance trendline (lower of two black lines). This trendline is the parallel projection of a trendline I originally drew on a weekly chart joining 131.15 and 130.55.
  • PRICE is also backing off after yesterday’s test of the 121.28 old low, which is also the bottom of a price spike on the weekly chart.
  • Lastly, PRICE formed a shooting star candle yesterday
  • 14-DAY RSI posted a minor (day to day) bearish divergence WITHIN the bear market resistance zone. The last time that this zone ended up capping price action (yellow vertical line), a substantial downside move followed.

Outlook: If the support at Tuesday’s 119.95 low is breached and the gap up from last Friday’s 119.69 high is closed, then I’d watch for declines toward 117.14 initially. This outlook would be negated (in the short-term) if instead there’s a close back above yesterday’s 121.23 high and 121.28.

GLD | KEY PRICE LEVELS

131.15 — Jul 6, 2016 high, near 131.24 (midpoint weekly price spike)
128.20 — Sep 22, 2016 high
124.76 — Nov 2, 2016 high
123.07 — Apr 17, 2017 high
121.28 — Apr 19, 2017 old low

Resistance Above

Support Below

117.14 — May 8, 2017 old high
115.56 — May 9, 2017
114.02 — Mar 15, 2017 low
112.81 — Jan 27, 2017 low

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