Gold Action Is Bullish

02/02/2010 1:40 pm EST

Focus: COMMODITIES

Thomas Aspray

, Professional Trader & Analyst

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In last Thursday's Trading Lesson (click here to read), we discussed the support levels for GLD, concluding that a retest of the lows and then a turn in momentum could complete the correction. The RSI3 turned higher Monday, and the action so far on Tuesday is positive. A break in the downtrend would complete the triangle formation, suggesting that the uptrend has resumed. The Fibonacci and chart formation targets are in the $123.50 area. Once the downtrend is broken, I would look for a one- to two-day pullback for a good entry point.

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