Market Timing Gold and Gold ETFs (GLD;IAU)

Please scroll down for the latest update.  Thanks.

The premarket attempted to take out the 139.54 resistance point and failed as of now. A failure to close over this point will bring gold down again.  Watch to see whether the close today is over that number.  If not, the gold will fall once again.  This sort of move up to resistance is classic in the beginning of a correction.  On the other hand, if it closes above that number expect a retest at the last high.  Read my prior posts on gold for more.

UPDATE @ 2:01 pm ET 3-21-2011: GLD has now failed to hold a rally above 139.54.  This could be a top in a bounce that will lead to more downside now.  If we don’t have a close above that level, the correction that started at the topping formation will likely continue to lower lows.  (This pertains to trading positions only.  See prior posts)

UPDATE 3-22-2011 @ 2:40 pm The GLD is at 138.97, which is below the 139.54 overhead resistance point that the market was challenging.  As the Euro is not making new highs and the US dollar index now MAY rally (has not yet; see us dollar index post with update), gold will be pressured in US dollars terms – will be cheaper in US dollars.  The rally back in GLD managed to close the gap which is a common finding with GLD, but the attempt to close above 139.54 failed yesterday.  It was a failed breakout.  I expect GLD may descend to about 132 or possibly 128 before this correction ends.

Click Here to Subscribe to my FREE SP500Tracker™ Market Timing Newsletter and free “Tips”

If you want to see the PREVIOUS issue: Previous Issue

Standard Disclaimer: Remember, it’s your money and your decision as to how to invest it.

© 2011 David B. Durand, M.D. All rights reserved.

Advertisements
This entry was posted in gold, gold etf, Market timing and tagged , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s