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

August 25, 2009 (FinancialWire) (By Frank Kollar)

Shares of Streettracks Gold (NYSE: GLD have been moving sideways but in an ever tightening pennant pattern since February, 2009.

This large pennant pattern can be created on a daily chart by connecting the highs on Feb 20, June 2 and August 4. Then connect the lows on April 17, July 13 and August 17.

These large patterns are seen after a large move, up or down, that leaves traders unsure whether to take a long term bullish or bearish position.

As the pattern tightens, there is less and less room for the ETF to trade while staying within the upper declining resistance line and lower rising support line. Typically, when the pattern is broken, the market then follows through in the direction of the break.

Usually pennant patterns are broken in the direction of the trend that was in existence “before” the pattern began. In this case that is to the upside.

The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in Streettracks Gold.

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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