Gold has enjoyed a stellar run this year, but the past two weeks have seen a sharp pullback in price following a classic reversal pattern in the last week of October, states Ian Murphy of MurphyTrading.com.
On the weekly chart above, the SPDR Gold Trust (GLD) (the most popular gold ETF in the market), formed a reversal bar above the 3ATR before pulling back 8.4% in the following two weeks.
The trailing stop settled at $229.60 on Friday and a further decline of 4% would be required to trigger an exit. For what it’s worth, Goldman Sachs has issued a bullish call on the metal this week.
Learn more about Ian Murphy at MurphyTrading.com.
