Is Gold finished with its Corrective Pull-Back?

The Gold ETF (GLD) broke out of the downward broadening price pattern back in August.  That break, if accepted, would be an important inflection point for traders and signal a great swing trade opportunity for those paying attention.  I traded that break higher but have been out of the precious metal trades since September 8th when I noted on this blog site about the oncoming strength in the US$ (click here).

Here are the charts I am watching …

Gold ETF (GLD) – Weekly Chart

Gold ETF (GLD) – Daily Chart

The daily ATR resistance level was broken last Friday and this week you could argue that GLD has done exactly what I like to see price do when I am watching for the “acceptance” of that ATR break (i.e., a controlled price consolidation that holds above the new ATR support level and/or the prior price pivot low).

I am starting long swing positions in gold miners today, with the thought to build that position over the next couple of weeks.  My stop will be if/when GLD drops below the October 6th daily candle low of $119.78 on two consecutive 65-min candles or on a closing daily candle basis (whichever comes first) …

Cheers … Leaf_West

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