This chart is literally Gold. $GLD – March 30, 2023
This is Scott with your Chart of the Day. I want to take a look at a chart that is, literally, gold, it is GLD, the Gold SPDR Trust ( NYSEARCA: GLD ). This chart has me thinking, thinking very deeply because we are currently in a market where high beta tech leaders are working.
We are in a market where semiconductors are working, but Gold ( NYSEARCA: GLD ) is also working. And rarely do we get all three things working at the same time, but we are in that situation now. Where people are speculating on some of these leaders like Microsoft ( NASDAQ: MSFT ), Google ( NASDAQ: GOOGL ), Amazon ( NASDAQ: AMZN ), Apple ( NASDAQ: AAPL ), etcetera, NVIDIA ( NASDAQ: NVDA ).
But they’re also putting a little money, seemingly, into Gold ( NYSEARCA: GLD ). We are seeing a jump in Bitcoin as well, right now, as people look for a store of value. And so this monthly chart on GLD ( NYSEARCA: GLD ) has me very interested.
Because if I look deeply, we have a big fat cup and handle pattern that starts all the way back in 2011. And if we can break above some of these tops, right around that 194.00 zone, potentially we have a measured move from the low of the cup to the high of 90 percent.
And so the way that I understand to measure measured moves in a cup and handle is, you take the low from the low, and then you go to the high of the high, and then you add that onto the neckline, and so that is about 90 percent.
So if we were to break above the 194.00-200.00 area, let’s add 90 percent. That has the potential to bring GLD ( NYSEARCA: GLD ) up to that $400.00 level. Now, that is life-changing money. So this is definitely a chart that I am interested in. I am not guaranteeing that that is going to happen, obviously, we don’t know, but that is the technical target for a breakout of a cup and handle like this.
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