Streettracks Gold Shares (NYSE: GLD) Nears Breakout Says Market Timer Frank Kollar

July 28, 2009 (FinancialWire) (By Frank Kollar)

Shares of Streettracks Gold (NYSE: GLD) have been rising of late and are approaching an upper resistance level that, if surpassed, could result in a breakout and considerably higher highs.

Three weeks ago we wrote that GLD had formed a pennant pattern (daily chart – February to current) and that the rising lower rising trend support line of this pattern should not be broken.

That lower support is at about GLD $90 and it is also critical the 61.8% retracement support level for the April to June rally.

Since that important lower support held in early July, GLD has risen steadily and is now at $93.70. A decisive close above $96, where the declining trend resistance line of the pennant pattern currently is, would constitute a breakout.

We would likely see a test of the highs near $100 should the breakout occur.

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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