The Gold And Long Dollar ETFs Have Positive Charts As Commodities Slip On Oil

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Includes: GLD, GSG, UUP
by: Richard Suttmeier

Summary

The Gold Shares ETF is between its 50-day and 200-day simple moving averages at $113.60 and $120.92, respectively.

The Commodities ETF is above its 50-day and 200-day simple moving averages at $17.57 and $17.17, respectively.

The Long Dollar ETF is above its 50-day and 200-day simple moving averages at $25.26 and $24.44, respectively.

Here are the daily charts for the gold, commodities and dollar exchange-traded funds.

The Gold Trust ETF tracks the spot price of gold and is said to be backed by gold bars in vaults in London.

SPDR Gold Trust (NYSEARCA:GLD)

Daily Chart For The Gold Bullion ETF

Courtesy of MetaStock Xenith

The Gold ETF ($116.01 on Oct. 19) is down 6.2% year to date, and its weekly chart is positive with the ETF above its five-week modified moving average of $114.61 and approaching its 200-week simple moving average or "reversion to the mean" of $117.67. This average was last tested during the week of July 13 when the average was $117.76. The 12x3x3 weekly slow stochastic reading ended last week climbing to 42.90, up from 30.48 on Oct. 12.

Investor Strategy: Buy weakness to my monthly, quarterly and semiannual value levels of $110.61, $110.26 and $103.62, respectively, and reduce holdings on strength to the 200-day simple moving average of $120.92. My annual risky level is $146.20.

The commodity ETF is heavily weighted to energy by about 60%.

iShares S&P GSCI Commodity-Indexed Trust ETF (NYSEARCA:GSG)

Daily Chart For The Commodities ETF

Courtesy of MetaStock Xenith

The Commodities ETF ($17.75 on Oct. 19) is up 9% year to date with a neutral weekly chart. The ETF is just above its five-week modified moving average of $17.72 and above its 200-week simple moving average or "reversion to the mean" of $16.31. The 12x3x3 weekly slow stochastic reading slipped to 70.92 last week, down from 73.05 on Oct. 10.

NYMEX crude oil is expected to rise to at least $80 per barrel given the issues in the Middle East, but domestic US supply is trumping this Wall Street wisdom. The weekly chart for crude oil is negative after setting its 2018 high of $76.90 on Oct. 3. The 200-day simple moving average is important support at $67.28. My annual value level remains at $63.81 with monthly and quarterly pivots at $73.33 and $73.87, respectively.

Investor Strategy: Buy GSG on weakness to my annual value level at $16.20. I do not show a risky level, and my quarterly and monthly pivots of $17.73 and $17.97, respectively, have been magnets as shown on the daily charts.

The US Dollar ETF is a basket of currencies that includes the dollar vs. euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc.

PowerShares DB US Dollar Index Bullish ETF (NYSEARCA:UUP)

Daily Chart For The Long Dollar ETF

Courtesy of MetaStock Xenith

The Dollar ETF ($25.47 on Oct. 19) is up 6% year to date and has a positive weekly chart with the ETF above its five-week modified moving average of $25.28 after weakness held its 200-week simple moving average or "reversion to the mean" at $24.96 four weeks ago. This ETF had been climbing this average since the week of May 25 when the average was $24.72. The 12x3x3 weekly slow stochastic reading rose to 57.91 last week, up from 53.83 on Oct. 12.

Investor Strategy: Buy weakness to my annual value level at $24.18 and reduce holdings on strength to my semiannual risky level of $28.65. My quarterly and monthly pivots are $25.20 and $26.04, respectively.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.