The S&P SPDR Gold Trust ETF (GLD) shares rallied more than 8% off their December 2016 low to their high earlier this year.

Shares saw a modest pullback over the last month that looks like the handle of a large cup and handle continuation pattern. In Monday's session, the stock broke above the rim-line resistance level.

The relative strength index is tracking higher above a rising 21-period average. Daily moving average convergence/divergence, which is overlaid on a weekly histogram of the oscillator, is above its center line on both time frames. Chaikin money flow moved over its center line as the handle portion of the pattern was forming. The accumulation/distribution line crossed over its 21-period signal average.

Recent price action and the technical indicators could be signalling the start of a second phase of the rally in the precious metal fund.

While the cup and handle projects a pattern target objective back up to last November's high in the $125 area, there may be a better vehicle to trade the breakout.

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