Streettracks Gold Shares (NYSE: GLD) Forming Pennant Pattern Says Market Timer Frank Kollar

July 7, 2009 (FinancialWire) (By Frank Kollar)

Shares of Streettracks Gold (NYSE: GLD) have been moving sideways, though with a great deal of volatility, since testing their highs back on February 20 and failing to break out.

But all may not be over for this widely traded ETF.

Pull up a daily chart and connect the February 20 highs and June 2 highs and extending the line to the right. Then connect the lows on April 17 and June 23, again extending the line to the right.

This creates a pennant pattern that has an upper declining trend resistance line and a lower rising trend support line.

Typically, when you have a pennant pattern after a long term advance such as GLD had from October 2008 to February 2009, it resolves to the upside.

We may not have long to wait for and answer as GLD is right at the rising trend support line. Look for a reversal to the upside this week, or a break of support leading to lower lows.

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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