January 6, 2011
On Tuesday, January 4, shares of Streettracks Gold (NYSE: GLD) dropped precipitously and closed down 2.4%. What went wrong?
Over the past two months there have been two breakout rallies that began after prices had corrected. Both corrections had been shallow, at least in terms of this volatile commodity and each correction was followed by a rally to new highs.
This time we again had the rally but failed to reach a new closing high. GLD then corrected Tuesday in what may have been only an overreaction.
The test is at about $133 a share. This was the low on Wednesday, January 5 and also the low reached in the last correction on December 16.
If this level holds, we could again be headed higher. If not, we could easily see a test of support at $130.00 a share in coming days.
Fibtimer.com does not currently have a position in Streettracks Gold.