Stock Chart GLD

Posted by downtowntrader | 5/08/2009 04:19:00 PM View Comments

Stock Chart Analysis GLD

SPDR Gold Trust (ETF)(Public, NYSE:GLD)

Not sure if I need to add much analysis here as the chart pretty much speaks for itself. Gold pulled back towards a 50% fibonacci retrace in an orderly channel as it corrected from the October to February rally attempt. It recently cleared the channel and has been consolidating over the 20 and now 50 day moving averages. While I have liked Silver better than Gold, I think Gold is in a pretty good spot here, as it is looking bullish and the risk is very easy to define. The two logical places for setting your stops would be under 86.50 and under 85. Targets could be near 95 and 99, but I would prefer to trail a stop on a good portion of the trade. Let's see if the inflation trade follows through.

Good Trading,

disclosure: I own gold via the double ETF, DGP.

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