Streettracks Gold Shares (NYSE: GLD) Pull Back at Resistance Says Market Timer Frank Kollar

May 28, 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. Two weeks ago we asked “is this a bear rally that will suck in money and then collapse?”

The time to watch this widely traded but extremely volatile ETF is at current levels. Gold Shares reached exactly the 50% retracement of its entire March to May correction, and has so far been unable to surpass it. This resistance level is the first of two that traders are watching. The 50% is at 91.82, and just above is the Fib 61.8% retracement at $93.86 which is critical resistance.

Gold Shares must close above critical resistance at $93.86 to confirm we are in a rally that will test the prior $100 highs. Watch for bearish reversal patterns at current levels to indicate the rally is failing.

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.