NFTRH; Important Resistance Confluence on Gold

Yesterday we updated the hit to the miners and that update still looks valid.  It looks like the reaction is just that, a reaction.  But also note that the miners and the metals are much closer to their targets now and the risk vs. reward is not as good as it was before, for the short-term.

Let’s look at GLD as an example of why I think a correction to the rally can come soon, perhaps after we acquire the targets or get closer to them.

The daily chart has had a bullish pattern with a measurement of 127 to 128.  RSI is getting over bought and at target it would be flat out over bought if it rises from here in the short-term.

gld

The weekly view shows a downtrend channel (similar to the one we’ve reviewed on HUI with top line at 224) with its top line right around 127.

gld.wk

NFTRH is not a service that tells people what to do with their respective investment orientations.  But it is a service that brings up significant points when it sees them.  As you know, I’d hold my gold no matter what in the current global macro environment.  But others may be playing the price game and they should be aware that a potential reaction point is upcoming, just as with the miners.  Consider this update a look ahead to a probable resistance point.