Below is a combo chart we’ve been following for a very long time which has the HUI on top and GLD on the bottom. Looking at the GLD chart on the bottom you can see it gapped above the top rail last week but today it gapped back below the top rail signaling an island reversal may be in play now as shown by the red circle. This also tells us the top rail for GLD is properly placed. This would be a low risk entry point if one wanted to short gold using the top rail of the 2 1/2 year falling wedge as your line in the sand.
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