July 28, 2010
Shares of Streettracks Gold (NYSE: GLD) took a nosedive in trading Tuesday, July 27.
Since early-May gold shares has held above the $115 level, but in Tuesday’s trading, share prices gapped down at the open, to below this important support and then continued lower closing at $113.51.
This breaks three months of strong support and also likely ends the rally that at one point reached all the way to $123.56 a share.
What next for this extremely volatile and hugely popular gold ETF?
We would not hold shares after this decline. Unless the damage is undone in coming weeks, we would expect gold shares to break $110 and possibly test the $106 level.
There will be better times to own this ETF.
Fibtimer.com does not currently have a position in Streettracks Gold.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
Disclosure: Fibtimer.com does not currently have a position in Streettracks Gold.