Naughty Flicks

Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenu(See video above for Katie’s complete chart breakdown.) SPDR Gold Shares (GLD) has been in a bear market cycle since peaking in January, but improving momentum suggests a significant counter-trend rally may be forthcoming. The technical setup supports a rebound within the context of the prevailing downtrend. GLD has stabilized above support defined by previous lows near $360, establishing a potential base from which it can recover. Initial resistance is in the $405-$410 zone, defined by the weekly cloud model and 200-day moving average (MA). Short-term momentum has improved per a new daily MACD buy signal, providing a catalyst for a rebound toward resistance 7%+ above. The signal follows a brief breakdown below support that failed to confirm, suggesting a shakeout (i.e., false breakdown) has occurred. With upside follow-through, the weekly stochastic oscillator is poised to turn higher from oversold territory, providing early evidence of an intermediate-term low in GLD, aligned with the price action in gold futures. The ratio of GLD to the SPDR S & P 500 ETF Trust (SPY) is also turning higher from support, with the weekly stochastic oscillator rebounding from oversold territory. Improved momentum behind GLD versus SPY supports outperformance by gold versus U.S. equities for a risk-off takeaway. Katie Stockton , CMT, is the Founder and Managing Partner of Fairlead Strategies. Access research from Fairlead Strategies for free here . DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.Read More