Today we are getting a little correction from last weeks breakout move from the 5 point bullish rising flag formation. As you can see on the chart below we were able to close one of the 2 overhead gaps GLD made on the way down. Fridays action took us up just to the underside of the top gap where we are getting today’s correction. I’ve marked in yellow today’s gap down which should get filled in the not to distance future. If we backtest all the way down to the top rail of the rising flag we could see 165.40.

GLD 60 minute look.

The daily look shows how we hit the top rail last Thursday on the bullish rising wedge pattern. The action GLD has been giving the technical trader has been textbook in that the support and resistance points are playing out just as you would expect. Now GLD has overhead resistance at the top rail of the bullish rising wedge and support should now come in at the top of the red 5 point bullish rising flag. Watch those two areas for further developments. The really big thing to watch is the top blue rail of the bullish rising wedge. Once we get above that top rail we should move on up to test the double top area around 1925 or so. One step at a time.

GLD daily look.