• SPDR Gold Trust – A Technical Breakdown Worth Noting

    by  • December 20, 2012 2:25 pm • Chartist Corner, Charts to Watch, Quick Hits • 1 Comment

    For the past several months, I have focused on two simple moving averages on the SPDR Gold Trust (GLD – 159.41). 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


    Todd Salamone is a graduate of The Ohio State University. As Senior Vice President of Research, he oversees the strategies and analysis used in supporting Schaeffer’s various option recommendation services. He is the author of the company’s weekly e-newsletter, Monday Morning Outlook, and a contributor to Bernie Schaeffer’s SENTIMENT magazine. With more than 18 years of trading experience at his command, Todd manages numerous alert services for Schaeffer’s, and has introduced many sentiment-based indicators to its subscribers. Todd has presented option strategies to retail investors in cities throughout the U.S., and is a frequent commentator on financial markets via print, radio and television, including CNBC, The Wall Street Journal, and MarketWatch.


    One Response to SPDR Gold Trust – A Technical Breakdown Worth Noting

    1. Marc Courtenay
      December 20, 2012 6:31 pm at 6:31 pm

      Valuable perspective Todd, and I appreciate the technical factors that you point to. I’ve written about the fundamentals for gold and silver (please see http://seekingalpha.com/article/1066021-unique-ways-to-invest-in-china-s-silver-lining) but as you point out we can’t afford to overlook moving averages and the MACD, which I recently included in my most recent article (http://seekingalpha.com/article/1073411-3-safety-net-tech-stocks-to-consider-for-2013). Your comments and feedback would be appreciated. Thanks for your reliably quality work. Marc Courtenay

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