For the past several months, I have focused on two simple moving averages on the SPDR Gold Trust
(NYSEARCA:GLD). They are the 140-day and 320-day moving averages. Take a look at the chart below and the importance of these trendlines during the past few years.
Gold bulls should be alerted to this morning’s break of the above two moving averages, and look to exit GLD long positions if the GLD fails to overtake them by week’s end or by the end of the year.
In fact, the 320-day moving average is now pointed lower, and could be hinting at longer-term weakness after a truly impressive run over the past several years. Admittedly, these moving averages aren’t text-book. But the significance of these trendlines cannot be denied,as they have marked support and resistance, with crossovers signaling short-term buy and sell signals, too.
GLD With 140-Day and 320-Day Moving Averages
This article by Todd Salamone was originally published on Schaeffer's Investment Research.
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