GOLD Exhibits Upside Reversal Price Action Amid "Friendly" Underlying Conditions

Mike Paulenoff MPtrader

On the subject of Gold, let's notice that today's up-gap open and sustained price action in SPDR Gold Shares (GLD), so far, could have left behind an "Island Cluster Reversal," which for the time being has the makings of a change in near-term trend direction.

Adding confidence to a possible Island Reversal is also the fact that today's strength has propelled GLD above its nearest-term down trendline (in the vicinity of 16.20).

Let's also notice that GLD has climbed during a period of 5 sessions that has coincided with a pullback in longer-term 10-year YIELD from 2.40% to 2.28%, and during a period when the Dollar Index (DXY) also is under pressure.

Let's see if Gold and GLD can sustain today's strength, and continue higher after the weekend, which will confirm the turn.

Author

Mike Paulenoff

MPtrader

Michael Paulenoff has been a student of and a participant in the world financial markets for the past 26 years, since his graduation from the Georgetown University School of Foreign Service in 1979.

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