SPDR Gold Shares (NYSE: GLD) at Strong
Resistance Level Says Market Timer Frank Kollar
March 4, 2010 (FinancialWire) (By Frank Kollar)
Shares of the SPDR Gold Shares (NYSE: GLD) have been rallying
this past week but have now reached levels where we can
expect sellers to enter the market.
When Gold Shares rallied back in early January, the $112
level stopped the rally and Gold Shares continued lower
for a month.
Now Gold Shares are back at this same resistance level,
closing Wednesday, March 3 at $111.63 a share. The $112
level is also the 50% retracement of the December to January
sell off, so short sellers will be watching for any sign
of weakness to enter the market and help push prices lower.
Of course maybe the second time will be the charm. Gold
Shares will then immediately be faced with another strong
resistance level, the Fib 61.8% retracement for the December
to January decline at $114.10.
So $114.10 is the number to watch. A decisive close above
this level would point to a new run to the December $120
highs. A failure at $114.10 would likely lead to a period
of lower lows or at least sideways trading.
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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