Below is today's update of the 60 minute GLD chart:
GLD filled the gap with a strong move today, and $GOLD finished above $1100 which is very promising. The continuation reverse head and shoulders pattern is looking textbook:
GLD held at support on Wednesday. On Thursday, GLD stabilized with an indecision candle, but was followed up with a long white candlestick. Of course, GLD needs to follow through on this and break through the 110.5. Basically, in order to break out of this pattern and resume the uptrend, GLD needs to break through the neckline. The gold miners are saying they will:
I am using the 3 day EMA to reduce the "noise" and draw a more accurate trend line. This chart is saying that the Gold miners broke through the down trend in early March, and a higher low develops, then this is pointing to more higher highs ...
The Renko chart is also confirming the breakout - the current short term trend is still up. In my next post, we'll take a look at how GLD and GDX are performing relative to $USD.