GLDHow High Can Streettracks Gold (NYSE: GLD) Go?December 3, 2009
A couple weeks ago we wrote that shares of Streettracks Gold (NYSE: GLD) had pushed above resistance at $109.04 and had a good shot at reaching $119.98 in coming weeks.
As chartists, we look to the next resistance level as the potential target when a resistance level has been decisively surpassed.
We did not expect that this next target would be reached so quickly.
Streettracks Gold closed at $119.10 on Wednesday, December 2, only a fraction below this resistance level and the target for the current rally.
Here is the problem. If Streettracks Gold closes decisively above $119.98 in coming days, it will forecast a continued advance to the next resistance level. But there is no “next” level.
Streettracks Gold is now rising on momentum alone. This is dangerous territory. We would suggest that new positions are very risky, but current long positions should be held with a rising sell stop set according to your risk tolerance levels.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in Streettracks Gold.
Disclosure: The Fibtimer.com (www.fibtimer.com) ETF Timing Strategy holds a position in Streettracks Gold.