Waving the “Flag”:
Gold bugs have had their time in the sun for a while but some bears are starting to come out of the woodwork as they hope that PRICE will “surrender” lower somewhat from here. I am not in that camp, although nothing goes up in a straight line. Two doji candles late last week on the daily chart below of the GLD may put some pressure on the precious metal. The WEEKLY chart suggests this rally still has legs as it has not achieved the measured move to 266 from the bull flag breakout above the 225 pivot. This week will be crucial in my opinion as the possibility of a 3-week tight pattern could develop depending on Friday’s CLOSE, as the last 2 finished very taut, within just two pennies of each other. Last week did record a spinning top candle which could see some fatigue, but notice WEEKLY RSI has been keeping near the oversold 70 RSI level, and we know there is nothing more bullish than an overbought situation that remains that way.