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Jeff Cooper: Is GLD Really Going to $100?


Analysis of the charts indicates that the bulls may step up in gold.

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Thursday morning, we sent an alert flagging a possible short-term breakout play in Market Vectors Junior Gold Miners ETF (GDXJ) on trade above $37.30 to $37.40.

The 30-minute chart below shows that once the breakout was triggered, the move carried to the prior day's high.

So following a test of Wednesday's lows, GDXJ was magnetized to Wednesday's highs.

Was just another late day squeeze? Or will the 'second mouse' get the cheese for the miners?

Pulling the lens back to check the weekly SPDR Gold Trust (GLD) chart shows that it is testing an important level where bulls may step up to the plate.

GLD is testing the high of the low bar week from December which itself was a test of the June 2013 low.

A bullish weekly Test of a Test may be playing out.

Many players who may want to invest in gold are holding back, believing that GLD is slated to drop to $100 (or $1000 gold).

IF such a move is going to occur, October sets up as an interesting time frame to expect it.

October is an important 18 months or 540 degrees (90 degrees X 6 sides for a cube, or a true square in time) from April 2013 when the hammer was lowered.

Note the duration and pattern of the consolidation off the 2011 top 3 years ago is somewhat symmetrical to the current pattern.

A break below what some point to as a monthly Bear Flag projects to around 100.

Is it too pat?

Will the Principle of Alternation come into play foiling those waiting to buy GLD at $100?

Twitter: @JeffCooperLive

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No positions in stocks mentioned.

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