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Today Update for Free Subscribers is below:
Today, we will look at what is happening to Gold on the GLD (ETF). Today's 1 year chart shows the three basic up moves that GLD has had during the past year.
GLD is once again coming to a critical area where it needs to decide if it will break out and run to new highs, or if it will stay within its expanding wedge trading range and drop 10+ points.
If you look at today's line chart, you can see that GLD is getting squeezed in between a resistance line and a rising support line. The resistance line is of special interest because it is making a triple top. As it makes this triple top, the zero based RSI is showing that each resistance line test has been occurring with less and less strength.
What happens next is pretty straight forward ... if the RSI breaks above the resistance line, then GLD will blast through its triple top resistance. If the GLD falls below its support line (see the red circle on the chart), then GLD will be facing the prospect of falling approximately 8%.
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