What the GLD ETF Chart Tells Us About Gold
What gold needs to do, in terms of this GLD ETF, is clear the 158 hurdle on a closing basis to set up a stage for a new advance.
Recently in the past six weeks we have seen a series of three higher lows including yesterday where a lower gap filled in and then gold reversed upward.
What gold needs to do, in terms of this GLD ETF, is clear the 158 hurdle on a closing basis to set up a stage for a new advance. I would expect in the intervening months to October for gold to continue meandering and correcting to as low as 1445-1455, my longstanding gold worst-case low targets I've had since last September.
Near term key levels are 150 on the downside and 158 on the upside. If we close below 150 on GLD ETF then we should be looking for my 1445-1455 areas to be hit this summer before a low. If we clear 158 on the GLD ETF, then the triple bottom at 1520 is likely confirmed and we can start tracking some upside for gold.
Editor's Note: David Banister is the chief investment strategist and co-founder of ActiveTradingPartners.com, a small-cap portfolio and market advisory service.
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