UUP has been building a base since November 25th, when it first touched 22.02.
On December 4th, the same day of the reversal in GLD, it emerged from its declining (bullish) wedge formation. The larger view shows the Elliott Wave 5-wave Pattern is almost an exact inverse of the EW pattern in GLD. What this suggests is, for the time being, is that the inverse relationship between GLD and UUP exists and may persist for a while. The significance of this inverse relationship is that a wedge pattern often implies that the entire decline from 26.83 or 27.01 may be erased in this rally in UUP.
Does this mean that GLD may go as low as 85.00?
There is no hard and fast answer to that question. However, we may be warned that the possibility exists and prepare ourselves for whatever outcome that presents itself.
Dr. Janice Dorn is the only Ph.D. (Brain Anatomist) and M.D. (Board-Certified Psychiatrist and Addiction Psychiatrist) in the world who actively trades, writes commentary on the financial markets and manages a subscription-based website. Dr. Dorn has been trading the gold futures markets full time since 1993. She has written over 1000 articles on trader and investor psychology, and mentored over 600 traders and investors.She writes on all aspects of trading psychology and provides a real-time trading service on her website: TheTradingDoctor.com.