Streettracks Gold Shares (NYSE: GLD) in Rally Mode Says Market Timer Frank Kollar

May 21, 2008 (FinancialWire) (By Frank Kollar)

Shares of Streettracks Gold Shares (NYSE: GLD) have been moving higher since hitting correction lows at $83.57 a share on May 1. Is this a new bullish advance with legs? Or is this a bear rally that will suck in money and then collapse?

The bullish case is easily sees in the chart. Gold Shares reached almost a 50% retracement before rebounding. This is at about the right level for a legitimate reversal. Gold Shares also has declined in a three wave pattern, which is typical of corrections to a major trend.

What can stop the advance? Gold Shares is approaching the 50% retracement at $91.82 for the entire correction. Typically this level provides strong resistance and it must be surpassed. After this is the critical Fib 61.8% retracement level at $93.86. Watch these levels for a reversal to the downside.

A close above $93.86 would result in a run for the prior highs at $100 a share.

The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy may have a position in Streettracks Gold Shares.

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.