How High Can Streettracks Gold (NYSE:
GLD) Go? Asks Market Timer Frank Kollar
December 3, 2009 (FinancialWire) (By Frank Kollar)
A couple weeks ago we wrote that shares of Streettracks
Gold (NYSE: GLD) had pushed above resistance at $109.04
and had a good shot at reaching $119.98 in coming weeks.
As chartists, we look to the next resistance level as
the potential target when a resistance level has been decisively
surpassed.
We did not expect that this next target would be reached
so quickly.
Streettracks Gold closed at $119.10 on Wednesday, December
2, only a fraction below this resistance level and the
target for the current rally.
Here is the problem. If Streettracks Gold closes decisively
above $119.98 in coming days, it will forecast a continued
advance to the next resistance level. But there is no “next” level.
Streettracks Gold is now rising on momentum alone. This
is dangerous territory. We would suggest that new positions
are very risky, but current long positions should be held
with a rising sell stop set according to your risk tolerance
levels.
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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Disclaimer: The financial markets are risky. Investing is risky. Past performance
does not guarantee future performance. The foregoing has been prepared solely
for informational purposes and is not a solicitation, or an offer to buy or sell
any security. Opinions are based on historical research and data believed reliable,
but there is no guarantee that future results will be profitable. |
