While I keep GLD (or SPDR Gold Trust ETF) on my radar at all times, it became actionable on September 2, when it broke out of the triangle formulation.
As you noticed, it's close to an important resistance level, so I would expect some pullback. As long as it's on minor volume and contained at the recent breakout level, it should be considered as a welcomed pullback.
The current stops are at a close below $92.5 (the bottom of the triangle, just below the confluence of 10-, 20-, and 50-day moving averages)
However, I wouldn't short it, expecting such a pullback -- although I have trimmed some of my position in an effort to add to it if it comes lower.
The reason is that gold's coming out of a tight volatility squeeze and the Bollinger Bands have just begun expanding and might signify higher prices ahead. Here's the chart (all my attempts to simplify it have been somewhat limited). That's a different picture from the moves in February and April of this year.
So, recapping, as long as it doesn't violate important technical levels on the downside on heavy volume, I'll continue to play this on the long side. As per the technical targets, let's visit them if it actually breaks out beyond the 2009 highs.
2 comments:
I know little on charts. But, if the economic theories proves right, the USD depreciation will shift some monies to Gold for whatever reason if not for Yen too.
I am with you, Long Gold til USD1200.
What is the KLCI next resistance level with the unexpected rise today? It will for the next 3 weeks before the mini crash in this October
As for the KLCI futures, it's heading for 1220 or near 1257. But the mkt must be able to negotiate tru a tough time-cluster/possible turn dates on the 14/15 Sept09.
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