Will Gold Maintain Its Long-Term Uptrend?

Gold took a thumping today, sending it down to a long-term trend line. Uptrends are defined as moving from the lower left on a chart to the upper right. In the chart below, you can clearly see gold's uptrend, marked by the white line. Gold is represented here by it's ETF, the popular GLD, which tracks the price of gold.

Gold's recent action has something of an ugly appearance, with its recent top hit in September towering over the november "hump" high.

It could present a terrific buying opportunity if you think gold still has long-term legs to the upside. If you are an aggressive trader, perhaps it's worth a stab at buying to see if you get a little pop, putting tight stops in place (stops at today's lows seem appropriate to me). If you are more cautious, waiting to see if it holds this trend line isn't a bad idea.

On the other hand, if gold fails this trend line, it could experience a quick drop to an area just above the $155 level on the ETF chart.

I'm leaving it alone for now.