For the last week we’ve been saying it was possible gold had bottomed.
Primarily the break below support that quickly reclaimed that support installed what appeared to be an Island Bottom.
As well we pointed out on the Hit and Run Private Twitter Feed on Monday that GLD had turned its 3 Day Chart up.
We went on to say that upside follow through would trigger a Triangle Pendulum buy signal.
Why?
A Triangle Pendulum buy signal is a strategy I developed to identify potentially dramatic surges. It occurs when an item breaks the bottom of a triangle formation then quickly reverses through the top of the triangle.
False moves lead to fast moves.
On Wednesday, GLD (and SLV) took out the tops of their respective triangles with authority.
They did so on gaps,
Upside follow thru from here offsets Phil D Gap from June 7th.
Above that open gap at 219.30 region and hold puts GLD in a position to attack prior all-time highs at 225.
Interestingly the 211 low is 90 degrees down from 225.
Consequently, it looks like a 90 degree consolidation played out.
If GLD takes out the high week, the reversal bar from the week of May 20th, it could explode like it did in early March.
Above the May 20th 225.66 high and holding triggers a Keyser Soze buy signal—a Reversal of a Reversal.
The March 2024 low just prior to GLD’s sky rocket was 184.
360 degrees up from 184 is 242.
IF GLD knifes through 225.66 all-time high and extends, my minimum expectation is 242.