This decline has persisted long enough for the 18 SMA to cross below the 50 SMA. This is enough technical damage that it could take some time to repair before resuming the up trend. This kind of pattern can be a consolidation before new highs or a more prolonged top. It is difficult to tell from the chart at this point. For the last couple of weeks GLD has been hovering right above the Dec. low. It is making some hammer candle sticks which are often a sign of a bottom. The biggest volume bar recently is green showing a little accumulation. Lets zoom in to the daily chart.
The daily chart shows the three highest volume bars are bullish candle sticks. It would be easy for the 6 MA to turn up from here to help confirm a short term low. However, the 200, 100, and 50 MAs are in a fully bearish configuration and any or all could provide resistance if reached. A rally from here is likely to be a bumpy ride for a while. The dollar index continues to rally which may still be a problem for GLD. Despite some good signs of a bottom, I don't think it is safe to say it won't break down just yet.
Bob
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