February 14, 2012
Shares of SPDR Gold Shares (NYSE: GLD) has likely begun another move lower since their last rally high reached on February 2.
Since their closing high of $184.59 reached on August 22, 2011, GLD has made two additional rally highs, each lower than the previous high, the first on November 8, 2011 at $174.98 and the second on February 2 at $171.05.
GLD has also made two correction lows, each lower than the previous low. The first was on September 28 at $156.22, the second on December 29, 2011 at $150.34.
On a daily chart, if you draw a line through the highs and also through the lows, you will have a defined trend to the downside with a declining trend resistance line at the top and a declining trend support line at the bottom. Until GLD breaks decisively out of this downtrend, the odds of lower lows ahead remain strong.
Currently there is short term support at $160.29 and short term resistance at $171.05.
We would be hesitant to take any position in this sector at this time.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy does not currently have a position in SPDR Gold Shares.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.