Buy On Dips Still..!

There is what I am feeling, a lot of love and hate on the Street for gold.

Those who couldn"t get in on this nicely performing asset class earlier can't wait for it to crash and lose its luster. They're also looking at the potential double-top pattern in SPDR Gold Trust ETF(GLD) to substantiate their views.

Those who did get in and made big bucks are looking to justify their long stance; the intensity of the arguments commensurate with the size of their position and/or profits made! Let's see what the charts say about GLD. (above)

Well, as seen here, GLD is at a lateral trend-line and Bollinger band support. My experience has shown me that winners rarely go down without a fight; keeping that in mind, I would be a buyer (for a short-term trade) when the support proves "supportive," and GLD shows some positive momentum here at the $92 level.

If this level is broken, look for stronger support at 50 day moving average (87.6) and 200-dma (84.3).

What about that double top? The volume pattern doesn't suggest that so far - and it's only when support is broken from the lowest point between the peaks that the pattern is validated.

So I wouldn't be too worried about that possibility right now.