Streettracks Gold Shares (NYSE: GLD) To Test Highs Says Market Timer Frank Kollar

June 3, 2009 (FinancialWire) (By Frank Kollar)

Shares of Streettracks Gold (NYSE: GLD) are approaching their 2009 rally highs.

GLD peaked in February at just above $97.00 a share. On Tuesday June 2, GLD closed at 96.36, just a fraction away from new 2009 highs.

GLD reversed higher after bottoming in early May after a two month long correction that shed some 16%. Now it is ready to try and break out to new highs again.

If GLD closes above $97.73 in coming days, and this is a likely scenario considering rapidly rising interest rates and inflation fears, the next test is only a good day’s trading higher. GLD closed at $99.17 back in March 2008. That 2008 high was an all time high for GLD, so the coming test(s) are big ones.

If GLD closes above $100 a share, a level that will receive publicity, we could see a rush of buyers enter the market. There is no way to know how high GLD can still go, or if it will even breakout for that matter. But this will certainly be interesting.

Short term support for GLD is at $91 a share.

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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