(Go to http://www.financialwire.net/2010/03/09/streettracks-gold-stalls-at-resistance-says-market-timer-frank-kollar/ to comment on this article.)
March 9, 2010 (FinancialWire) (By Frank Kollar) — Shares of Streettracks Gold (NYSE: GLD) pulled back on Monday, March 9 after GLD reached strong resistance last week and failed to punch through.
Back on January 11, GLD closed at $112.85, the high point in a two week rally. Shares reversed and declined almost 10% in the following three weeks.
GLD is back at this same level. $112.42 is the 50% retracement for the entire December to February decline in gold shares. Back in early January, the same level was the 50% retracement for the December decline.
Obviously GLD has trouble pushing above the 50% retracement level and after reaching it last week, GLD has again reversed and moved lower.
In coming days, a decisive close above $112.42 would point to a run for the prior $120 highs. A close below $108.30 would likely result in a test of the February 5 lows at $102 a share.
About Frank Kollar
Frank Kollar has been timing the financial markets since 1982, with online service since 1996. He is a dedicated trend timer and his strategies exited the markets before the crash in 1987 as well as the bear market in 2000 through 2002. During the 2000-2002 bear market, his bearish positions resulted in gains exceeding 100 percent. For 2008-2009, his strategy resulted in a 81.9% gain, all achieved by trading trends.
Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.
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.
FinancialWire™ is committed to serving the financial community through true journalism and providing relevant resources to investors. Standards-based, independent equity research on numerous public companies is available through the Investrend Research Syndicate (http://www.investrend.com/reports) written by FIRST Research Consortium (http://www.investrend.com/FIRST) member-providers. Free annual reports and company filings for companies mentioned in the news are available through the Investrend Information Syndicate (at http://investrend.ar.wilink.com/?level=279). FinancialWire™, in cooperation with the Investrend Broadcast Syndicate, also provides complete, daily conference call and webcast schedules as a service to shareholders and investors via the FirstAlert™ Network’s “FirstAlert™ Daily” (http://www.financialwire.net/news-alerts/).FinancialWire™ is a fully independent, proprietary news wire service. FinancialWire™ is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire™ website (http://www.financialwire.net/disclosures.php). Contact FinancialWire™ directly via email@example.com.
Disclosure: Long on GLD.