Correction Over for Streettracks Gold
(NYSE: GLD)? Asks Market Timer Frank Kollar
December 17, 2009 (FinancialWire) (By Frank Kollar)
On December 3 we wrote; “Streettracks Gold (NYSE:
GLD) closed at $119.10 on Wednesday, December 2, only a
fraction below the ($119.98) resistance level and the target
for the current rally. Streettracks Gold is now rising
on momentum alone. This is dangerous territory”
Since that date Streettracks Gold has sold off and lost
some 10% at its correction lows. On Wednesday December
16, Streettracks Gold rallied and closed at $111.59.
Is the correction over?
The declines closed below the 50% retracement level for
the steep October 28 to December 3 rally and almost reached
the 61.8% retracement level. This is right where we would
be looking for strong support and a reversal and renewal
of the advance.
Higher highs are likely with initial short term resistance
at $114.13 and then $115.40. If Streettracks Gold clears
these levels it should make a run for its prior highs.
On the downside, should Streettracks Gold close below
its correction lows at $108.72; we could see a test of
the October lows at $100.65.
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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