The big picture that is evolving in the SPDR Gold Shares (NYSE: GLD) shows that yesterday's high at 139.00 represented the third failed attempt to hurdle and sustain above 139.00 during the past eight weeks. Today's sharp gap-down open and downside follow-through (so far) leaves behind a triple peak that is putting increasing pressure on the Nov-Jan support line, which cuts across the price axis today at 134.75.

Let's notice that the rising 50-day moving average also is in the vicinity of the near-term support line, at 134.58, which adds more significance to a violation of the 134.75/50 support area.

If 134.75/50 is violated and sustained, given the pressure exerted by the triple peak, it could trigger an avalanche of selling pressure that drives the GLD towards 130.00-129.80 quickly.

By Mike Paulenoff

Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

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Comments

nabp
05 Jan 11, 06:36

not a big pic

Big picture, huh? if yu wanna show the BIG PITURE, yu've gotta show the chart from 1979...triple tops, huh? sell it then, sell them all...quick...it's gonna drop, quick, sell it. I'll remember who yu are...better not jump from here...or I ain't gonna read yur stuff anymore.

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