A Discounted View

For the second time in 2017 Gold (GLD) is testing resistance at its 200-day simple moving average (200SMA). Traders use the 200SMA  as an important trend indicator. For example, identifying the slope of the 200SMA or the price relative to this moving average are useful trading techniques . After rallying from late December 2016 to late February 2017, Gold encountered its first test of the 200SMA. Subsequently, the price backed off to previous support before touching its 200SMA again this week. In doing so, Gold formed a higher low at 114 which may be constructive for price action in the near-term. Specifically, if Gold can close above its 200SMA look for another 10 points of potential upside or a retest of the 52-week highs around 130 over the coming weeks to months. However, continued faltering at the 200SMA should be taken as a sign of weakness and offer traders an opportunity to get short Gold in line with the longer term trend. Zooming out to one order of magnitude