Gold happened to hit it’s 2010 high at a Fibonacci time date cited in the chart below, posted on 6/26. Fibonacci time study was the key tool for calling the exact day of the highs for Gold.
See this link for more on why this date was important for Gold…Precious Metals post on dshort.
Now Gold ETF (GLD) finds itself up against overhead resistance that could be very dangerous for it!
For anyone that is looking to score on defense…..it really doesn’t get any better than RIGHT NOW!!! If you do own inverse metals positions use the resistance line as your stop on those positions!
GLL and VSL should do well if resistance holds.
Couldn’t you draw an upper level channel line parallel to the lower line and conclude we are in a bull market? I would think the penant here is too large.
Chris,
I had some short-term GLD puts waiting for GLD to hit its 50 day MA at $118.35. What was frustrating was, that GLD in the pre-market futires were down to approx the levels that I was waiting to close my puts on. However, once the market opened, apart from the first few seconds, I saw huge buying on my charts and it never really gave up (sort of) after that. I believe Gold bullion ended at $1230 plus. I had to close my puts, and at least protected my capital. My point is, when rumors of QE on Friday hit the market, the GLD buying was relentless. What was also frustrating is, UUP was not going up. It almost seemed to me that QE was getting factored into the day’s proceedings. Thus, from a technical point of view I agree with your assessment (I had earlier read an Elliot Wave explanation basically reaching the same overbought assessment on GLD) what we traders (esp independent ones) have to extremely careful about is governmental intervention (whether that be QE in US or BOJ trying to do something about the Yen or ECB trying to prop up Euro with its stress tests) and applying what one could call classic tech analysis to our trading decisions could be to our own detriment if we do not figure govt meddling in the markets. This is a reality we have to accept. Since we are entering a seasonally string Gold month, I would be cautious to short Gold, form that perspective.u
Chris,
Great chart on GLD…it now sits at 120.30…any thoughts?
Will GLD need to breach the top tine of the rising wedge to confirm upward price trend? I understand your comments on failing on the bottom of the wedge which is now resistance but interested if the opposite happens as well?
Thanks,
Chuck