I am still bullish on gold and the GLD ETF but as I alluded to before, the gold market has a habit of trading like molasses sometimes even during a massive breakout.
On the daily chart I am seeing a possible head and shoulders topping pattern that could send the GLD ETF down to the 95 and change area which would also place price right along short term uptrendline support.
I would definitely like to see that up trendline support hold as we go further into September.
The volume has come in a lot lighter today on the GLD ETF and supports the case that we could have a shorter term topping pattern going on right now.
If we do pull back down to the 95 range it could possible be an ideal second entry chance in this market. I would love to see everyone get bearish on a GLD move to the 95 area and then to see gold blast higher in a week or two for a continuation move.
In case you forgot, the second half of September according to the 30 year seasonal chart is the most bullish of all for the precious metals sector… So a decline starting tomorrow and into early next week could set up the mother of all buying opportunities in my opinion.
Meanwhile, many in the gold camp are still skeptical of this move and don’t believe it and do not want to buy it. A decline the next few days could have them believe they are right. So we need to see the gold price touch that up trendline as if it is stepping on hot coals.