How High Can Streettracks Gold Shares (NYSE: GLD) Go? Asks Market Timer Frank Kollar
January 31, 2008 (FinancialWire) (By Frank Kollar)
Shares of Streettracks Gold Shares (NYSE: GLD) are again in rally mode after a short correction in mid-January.
Gold Shares have already pushed above most long-term resistance levels, so there is really no limit on how high they might go. But gold is volatile to the extreme. There are likely to be substantial corrections along the way and no one knows just when this rally will end.
So keep a trailing stop as shares rise, and be prepared to exit if it is hit. Right now the logical stop is at just below the last correction lows or at about $85 a share.
If you trade this ETF, be sure to keep a stop in place, as gold and gold stocks are the ultimate of volatile commodities.
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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