XGD ( All Ords. Gold Sector) re visited.

Timely to re visit XGD in order to see our position in the trend. Most dominant past chart pattern of a trading range, followed by a BREAKOUT in the current month and the price action now testing it’s resistance/overbought line of the newly established UP TRENDING CHANNEL. This UP TRENDING CHANNEL now becomes the most dominant chart pattern replacing the prior trading range. 

A clear definition of a DOW THEORY 2nd TF ( Medium/Intermediate term) UP TREND also on display within this channel with rising peaks and troughs.

A potential pullback to the support line of the channel after becoming overbought now becomes a possibility. Whether or not it happens is another matter.

OBV at the bottom window also supportive of the newly established BULL RUN. It is also registering higher peaks and troughs.

XGD monthly chart below showing the transition from a trading range ( trendless phase) to an UP TREND.

xgdmonthly21022016

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