Very interesting situation developing in spot gold and by extension, the GLD (streetTRACKS Gold Shares). Let's notice that the price structure is wedge-in between the rising 200-day moving average (support at $859), and the 50-day & 21-day moving averages (resistance) as well as the March-June resistance line all clustered around $900. My sense is that if gold hurdles and sustains above $900, gold prices could rocket towards $1000 again. However, the 15-week cycle, which has proven to be a reliable turn projector, is not due for 2-3 weeks and warns me that perhaps any strength in gold here is a trap ahead of one more plunge into the cycle low timeframe- and another test of the 200-day moving average? I really do not know, which is why I am on the sidelines in the GLD.



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.