Gold meets Technical Resistance

Gold, shown here with a monthly chart of GLD (SPDR Gold Trust), is in a long-term up trend and is trying to recover from an intermediate-term down trend that commenced in September 2011. GLD found some support near the 100 price level in December 2015, from which it sustained enough momentum to break out of a 2 1/2 year downward sloping channel pattern. Today GLD is again finding price resistance from a larger degree downward sloping channel formed off the September 2011 price climax.

Notice how the lower blue upward sloping trend line that began in 2006 formed support for the October 2008 low GLD made during the Great Financial Crises and again that same trend line supported GLD at the 100.23 low put in throughout December 2015. Also, notice how the last 3 monthly price bars are stuck under the red downward sloping trend line, which initiated from the September 2011 price climax.