So, as you can see, we're just trading around inside of this big , and interestingly, the is forming right near what appears to be the end of the huge V bottom formation. The sheer size and depth of the V bottom, is enough to produce a breakout well into the green zone that I have on the chart.
The green zone is likely to be a very significant area when gold re-enters it. You can see that when gold traded inside of the green zone in the past, the price movement was very rapid. This shows us that there isn't much support or resistance in there. So if/when the GLD breaks out into that area, it could produce a powerful rally higher, which may cause the GLD to surge into the 23.6% retrace, which intersects with the top of the green zone.
The technical indications show that the gold market has formed a long term bottom, and a breakout into the green zone should turn the afterburners on. If we eventually see a breakout above the green zone, I think that we could get a retest of the all time high.
As a side note, a golden cross was formed, in January, on the weekly chart. SO you can see that there are a lot of technicals that suggest further appreciation in the price of gold .
From a fundamental perspective, there is a lot of pressure on the dollar, and that should continue as is set to rise as we hinge on the brink of a full blown trade war. Furthermore, there is reason to believe that the stock market could be topping out, which would cause investors to flock to the safe haven.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! revoir! ;)
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
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