Streettracks Gold Shares (NYSE: GLD) Bounces at Support Says Market Timer Frank Kollar
September 17, 2008 (FinancialWire) (By Frank Kollar)
Shares of Streettracks Gold Shares (NYSE: GLD) are now off about 21% from their July rally highs, and 23% from their March highs. Where to next?
On Thursday, September 11, Gold Shares reached the Fib 78.6% support level and reversed to the upside. This is the 78.6% retracement of the entire 2007-2008 advance in gold stocks so it is an important long term support level.
Gold Shares has so far moved higher from this support, but never did have a definitive reversal day on high volume. The Gold Shares rally is thus suspect.
If Gold Shares can break above, and close above, $82.00 a share, it has a good chance of being at the beginning of a sustained rally. Should Gold Shares close below $71.23, it will likely decline to $65 a share in coming weeks.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy may have a position in Streettracks Gold Shares .
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.
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.
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