Yesterday was an important day for GLD. A week or so ago I said we needed to get above the top rail of the bullish rising wedge to really turn GLD bullish again. As you can see on the chart below we gaped over the top blue rail of the rising wedge yesterday. This was a very positive indication the top rail is still hot and in play. Take a moment and follow the price action against the top rail of the rising wedge. What you will notice is that everytime we break above or below the top blue rail there is a gap or we just trade up to the blue rail and back off. These are important little clues as to the validity of the top rail of the bullish rising wedge. I’ve marked where we may see one last backtest to the top rail that we broke out of yesterday. If we backtest the top rail, 172 should come into play. That’s about 20 points lower than where we are trading presently. We don’t have to have one last backtest but from my perspective I would love to see us test the top rail one last time, close the gap, and then rocket higher. Either way as long as we stay above the top rail of the bullish rising wedge the bulls will be in charge.

GLD daily bullish rising wedge, gaps and backtest.