Lonestar1

Happy Days for Gold?

From a technical viewpoint, the move last week was significant in several aspects:

(1). It broke the down trendline since 7/15/08. The next resistance, as Jeff pointed out, is $92 for GLD. $92 is the trendline level since 3/15/08 (the very top). A breakout above $92 would be very very bullish for gold.

(2). Last week, gold was on its own, despite up or down move of $. This is very important.

(3). Some pullback is possible at $92, if this resistance is not impulsively taken out.

(4) My original expectation is the breakout should be in early Feb when Feb futures contract delivary requests increase more forcefully than Dec contract. Clearly if $92 is taken out impulsively, gold would entering a new territory earlier.

(5). Retracement from $92 down to $83 area would keep the bull agenda intact.
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Above is purely chart reading.

Fundamentally, let helicopter Ben airdrop to the pockets of goldbugs.