Gold (GLD) leads the list of the weakest stocks on StockTwits over the past two weeks. This weakness is a result of a consolidation after a rally out of long term lows. Friday’s daily print of StockTwits momentum removed GLD from the 1 Day Weakest list. This is a positive sign and puts GLD at an inflection point.

In early June I posted an update of our gold chart at Downside Hedge. In that post I suggested that the worst may be over for GLD. After that post GLD rallied above its long term down trend line, and both the 50 and 200 day moving averages. It is still above the 200 dma and the long term down trend line as well as a newly formed intermediate term up trend line. StockTwits daily momentum has been falling and 7 Day momentum is turning back up from the same level that marked the last low in price. Twitter 7 Day momentum is still confirming the new up trend. These momentum indicators need to hold their recent lows or it will suggest that traders on StockTwits and Twitter have given up on the rally.

Over the next week, keep an eye on daily momentum for a break above its downtrend line. It will be the next sign that traders have stopped selling and are starting to support GLD. A good upturn in 7 Day momentum will create a buy setup.

Below is an updated long term chart of GLD.