I've been pointing this out to subscribers for a couple of days now. GLD has formed a pennant pattern. Yes I'm showing you a pattern. I know shell shock right? :) The only reason I'm pointing it out is that I'm bullish on PM. Now that I've got the disclaimer in; I've noticed in the past that these continuation patterns often form about half way through a move. As of today GLD is looking like it wants to break out of the pennant to the upside. Many of the leading gold stocks were very strong today. Probably a good sign that gold will be moving higher in the coming days. If you are trying to trade gold be mindful of your position size as the sentiment in gold is getting quite bullish. However I think the rise was so swift that many investors missed this trade and even though they may be bullish I'm not sure they've actually committed cash. If not and gold continues to rally we may get investors eventually chasing GLD higher. Just remember the PM are volatile and it could just as easily take a dive.
Market Direction Change
2 weeks ago