StreetTRACKS Gold Shares (NYSE: GLD) Declines to Support Says Market Timer Frank Kollar
May 16, 2007 (FinancialWire) (By Frank Kollar)
Shares of exchange-traded fund StreetTRACKS Gold Shares (NYSE: GLD) declined this past week to support at the $65.67 level. What happens next?
After failing to break out to new 2007 highs in early May, Gold Shares took a fast decline but has stopped at support. A rally here would be the second attempt to break out to new 2007 highs. But should support fail; look for a quick decline to $65.00 a share, and a failure there would point to declines to the prior lows at around $63.00 a share.
Note that the mid April highs were the 78.6% retracement of the entire 2006 gold rally. This is a critical resistance level so a failure here could doom any Gold Shares rally for quite some time.
Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
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