Gold has shown weakness recently and GLD chart has shown a reversal pattern to indicate the pull back.
- GLD has broken 20D and 50D MA with gap down.
- GLD is unable to break the 50D MA resistance although the recent rebound. This 50D MA support now becomes resistance.
- Bearish Engulfing candlestick pattern formed at the 50D MA resistance., after a short rebound.
- Base on the long term GLD uptrend chart pattern, everytime GLD break the 50D MA support, GLD will head towards the uptrend support (also the 23.6% support line of Fibonacci Fan) and the 200D MA.
- MACD Bearish Convergence.
- GLD starts to stick on lower band of Bollinger Band.
Current chart pattern represent a good opportunity to short the SPDR GLD shares and also opportunity to buy on dip when pull back to 200D MA support (provided the Gold rebound from the support).
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