Wednesday, December 27, 2006
Here is an hourly chart of the StreetTracks Gold Trust ETF. I am going to switch my commentary from the gold and silver futures markets to exchange traded funds which track these markets. My last comment on gold is here.
I think that the 62.50 level is strong resistance in GLD. It seems that longer time frame traders think so too. The three bars I have highlighted in red all represent longer time frame selling. The green bar represents longer time frame buying but there was no bullish follow through. So the buyers were accomodated by longer time frame sellers, a bearish development after an extended rally.
I think GLD is headed for 60.00 and eventually below 50.00.