SPDR GOLD (GLD): Breaking Down From Symmetrical Triangle
Original Post from My Stocks Investing Journey.
Need to watch whether 200D MA turned support to resistance.
SPDR Gold ETF (GLD): Short Opportunity!
Gold has shown weakness recently and GLD chart has shown a reversal pattern to indicate the pull back.
- GLD has broken 20D and 50D MA with gap down.
- GLD is unable to break the 50D MA resistance although the recent rebound. This 50D MA support now becomes resistance.
- Bearish Engulfing candlestick pattern formed at the 50D MA resistance., after a short rebound.
- Base on the long term GLD uptrend chart pattern, everytime GLD break the 50D MA support, GLD will head towards the uptrend support (also the 23.6% support line of Fibonacci Fan) and the 200D MA.
- MACD Bearish Convergence.
- GLD starts to stick on lower band of Bollinger Band.
Current chart pattern represent a good opportunity to short the SPDR GLD shares and also opportunity to buy on dip when pull back to 200D MA support (provided the Gold rebound from the support).
See other related news:
- End of Fed’s QE2 portends rocky ride for gold rally
- Where is the Gold Direction?
- Investing in Gold
- Why are Gold Stocks Underperforming Gold?
Gold: Where is the Future Direction?
George Soros has offloaded his position in Gold recently and cause the Gold & Silver massive sell off in May. However, base on the long term chart (GOLD ticker symbol is GLD), Gold is still on the long term uptrend. Critical support to watch is $138 and also the uptrend support line (in solid green line). This uptrend support line is also the 23.6% line of Fibonacci Fan. Breaking this support level indicate the end of Gold uptrend and may start a major correction. Also take note that Gold price is all time high! What goes up must come down! Maybe it is a good time to short Gold soon. Trade with extra cautious!
If you are investing in Gold to hedge inflation, you may need to look at your Gold portfolio and decide yourself whether you want to take profit.
Gold Investing Record Profit Blueprint
Disclaimer: This is my personal analysis and I am not a certified stock analyst to recommend buy or sell decision.