GLD - Textbook Consolidation!Since the breakout of the inverted head and shoulders move off the coronavirus bottom, GLD has worked on a near textbook sideways consolidation. This move is critical in that it is holding at the breakout point of the h&s breakout, but it is also holding support at the resistance line that marked the break of the three peak top from 2011 - 2013 that ultimately gave way to much lower prices (the red line). Even a break back below this support would almost certainly be met with buying first around $149 (blue line), and if that did not hold then the $143-145 area (bottom magenta line and a back up the truck scenario that could happen quick but would immediately recover). Personally I think the back drop for gold and silver is the most favorable it has ever been and it looks like there is nothing the government won't do to support this economy for as long as it takes. The mini bubble in equities has no bearing on the state of our economy and is just a continuation of how this year started which in my opinion is as bad as it was in the dot com era save the even more insane valuations. GLD also held an extremely important level in the midst of coronavirus at the $136 level. Many technicians and others were looking for a move below $130 to test the breakout of the failed moves in the prior three years around 128. GLD has had a perfect stair step move since its bull confirmation move that started in 2018. Look for some additional consolidation as it works of the RSI and MACD levels which probably do not have far to go. A break of the yellow line, and we will take out the old highs and put us into uncharted territory. Oh by the way, the miners will let us know in advance when the coast is clear. Look for a GDX 38. Two weeks should do it.
