GLD consolidating before the next drop Gold did drop hard from the rising wedge, a very powerful bearish tradeable pattern. Now it's found support and started with forming a possible bear pullback which if formed could bring GLD back to the BigRed which is around 166$. Because of that huge drop on huge volume, it is very hard to say this is a healthy correction, rather than a new leg down. Like it always is played in the market, buy the rumor and sell on the news. Central banks bought tons of gold last year and then this year news came out about how they are increasing their position in gold and small retail traders went in shopping like there is no gold left. And now are bag holders.
Volume does confirm the price move to the down, very strong volume on the strong drop, very bearish.
It is below 20 days MA but above 50 and 200 days MA which is kindy of neutral.
RSI did cool down.
MACD is in the red, but both MACD and signal line is still above zero line which could be bullish.
After likely drop to BigRed GLD must find support and buyers otherwise this will be high for a longer period of time.
The dollar movement will defiantly help metals in their path, and one of the strongest movers will e CPI next week and FED next meeting.
GLD could even close the gap, but a further drop is imminent. The best option for bears would be consolidating or rising on small volume and then reversal on strong volume after a bear pullback is formed.
