The SPDR Gold Trust GLD ETF should have been up 100 dollars today

One would think that with the major headliner news today regarding Goldman Sachs and the SEC you would see the gold price spike 100 dollars higher?

But no, the SPDR Gold Trust is singing its own tune and trading with a one track mind typical of gold.  2 steps forward, 1 step back.  Repeat. Rinse. Cycle Again.

But here at BestOnlinetrades we could care less what this headliner news is.  Trading off of news most of the time is a bad idea.  Sometimes there are exceptions to this rule, but what I have found is that most of the time one is better served to just trust the charts and the indicators (and the tape action!) as best you can because they are not in the habit of lying.

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What the SPDR Gold Trust did today was pull back to test the breakout support area of the symmetrical triangle that it previously broke out from.  This is very classic tape action in any market.

It is also not that uncommon for stocks, commodities and other securities to pull back and test the APEX of the triangle that they previously broke out of.  In the case of the SPDR Gold Trust, the apex is within the 109 to 110 range.

Gold will be perceived as being much stronger if it can hold this current retest of the triangle without having to move into the apex of the triangle.

The 114 level still remains a very key level for the GLD.  You can see that it already ‘bumped its head’ on that level recently but failed to break through because of the incoming supply at those levels.

So for now I am viewing this as an aggressive buy opportunity, but the ‘safe buy’ opportunity is when and if the GLD starts to trade above the 114 level.

Posted in Commodities, Commodity ETF, Gold Market
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