GLD daily - at resistance, bearish reversal candlestick patternGLD daily is also at resistance, the same as GLD weekly which make even more pressure on the downside. GLD drops out of a smaller rising wedge which is bearish and is still inside of a big rising wedge which is a bearish pattern. GLD formed a bearish reversal pattern at the top, Hanging man. At the moment it is basing at a high which could be bullish if pops strong up, however chance for that is not more than 20%.
GLD is above all significant MA which is bullish and a sign of a strong bull market.
Volume is dropping during consolidation which is also bullish, as there are not too many sellers at this point.
RSI is way overbought and has strong and long bearish divergences which indicate a likely drop in price pretty soon.
MACD histograms are ticking lower with strong bearish negative divergences.
Overall: even though gold is in a bull market, its price is likely to reach its top for now and is ready to pull back. For bulls would be perfect to see pullback with smaller candles and on smaller volume for some time. A stronger volume on the downside with a bigger candle would indicate we are done with moving up and GLD is going down hard. Also bullish would be for the price to consolidate for several more days on this level without popping up on smaller volume so 20 days MA can catch a little bit and then move strong up.
On the downside, major support will be the rising trend line and rising 20 days MA. With the breaking of that support, next support would be the 166-168 area where is the support of weekly, and 50 and BigRed days MA on daily.
