GLD breaks out of bearish channel


In the last three months, GLD – the SPDR Gold Shares – was trading in a downtrend. We show this with the declining blue line that joins the lower highs. In addition to this, price formed a support line, the blue horizontal line, just below 120.

Then, with two bullish candlesticks and a huge gap between them, price jumped above the descending trendline and closed above 123 and above the upper Bollinger Band. It’s also important to note the heavy volume of the last two sessions that shows the buyers’ interest in GLD.

This momentum reversal has already been depicted in MACD, which has crossed above its signal line and just moved to the bullish territory.

Finally, GLD’s Relative Strength has moved above its 20-day exponential moving average, which has just reversed its trend and started sloping up.


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