Gold Tests Support

Today we saw commodities sell of with gold, silver and oil all coming under heavy selling pressure. GLD is now testing a very significant support level at around the $97 level. This level is important because it was once resistance back in June but now should act as support. We also see the 20 day moving average coinciding with this $97 area.

I'd like to believe that there is more upside for this market which is why I am still long. I think we were due for a correction and with today's heavy volume I kind of get the feeling that the market washed out many of the weak longs.

On a seasonal basis gold should still rally into early October but on a technical basis gold should move much higher based on the breakout of the weekly symmetrical triangle formation. I'm looking for GLD to reach an upside target of $105 but for now let's see if this support level holds.