The pattern carved out in the SPDR Gold Shares (GLD) off of last Friday's low at 167.77 continues to exhibit bullish form and is perched atop its most recent rally that peaked earlier this morning (pre-open) at 174.71.

That said, unless or until the GLD declines beneath yesterday's pullback low at 171.72, the extreme near-term trend will remain UP -- and higher -- projecting next into the unfilled gap area left behind on August 11 at 175.00-175.50.

If hurdled and sustained, that should trigger upside continuation towards a retest of the Aug high at 176.75. And it would appear that the GLD is acting independently of the directional action in EUR/USD (although a higher EUR generally is more supportive).

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.