The small consolidation (B) above the top of the parallel trend channel should provide another spot to add to or to initiate long positions on further strength. One way to trade this pattern would be to simply enter a long on a strong close above this resistance, though an intraday trigger is probably a cleaner entry. (A stop somewhere above 1,650 should work for both entries.) Note that (A) marks the corresponding entry to the GLD chart I pointed out at the end of last week. This would have been a better entry in terms of trade location, but don’t forget to look for other opportunities if you missed the initial trade.
Note also that this small consolidation is a variation of the nested pullback, a pattern I covered in detail in The Art & Science of Technical Analysis
