Streettracks Gold Shares (NYSE: GLD) Rally In Question Says Market Timer Frank Kollar
December 4, 2007 (FinancialWire) (By Frank Kollar)
Shares of Streettracks Gold Shares (NYSE: GLD) have suffered two fast and steep pullbacks over the past month, setting up a possible double top in gold bullion, as well as gold stocks who's charts are following bullion closely.
Streettracks Gold may also be forming a pennant formation, with its rally highs declining, and correction lows rising. A break of the support or resistance line connecting these minor trends would likely be significant.
Over the short term, for the next week, traders would likely see a close in Streettracks Gold shares above $81.00 as a breakout, while a close below about $77.90 to $78.00 would be seen as a failure of support. Either could lead to
a significant
rally or decline.
Of interest is the closeness of these two support and resistance levels. It would not take much to spark a new run one way or the other. And every day that passes, these levels get closer as the pennant closes.
Lastly, MACD for Streettracks Gold flashed a strong sell signal on November 13 th and has continued lower since.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy may have a position in Streettracks Gold .
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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