Wednesday, June 5, 2013
Has Gold Found a Temporary Bottom?
The top chart is a daily chart of the GLD ETF, and it shows a potential bottom forming in the 130 area. Don't get too excited by this development as the chart is still bearish overall. The longer EMAs (200 and 50 day) are both moving lower and prices are using the shorter EMAs as technical resistance. And even if we saw a rebound, the most likely areas of resistance would be the Fibonacci levels from the early October high and mid-April sell-off.
I believe the key to this chart is currently in the monthly numbers, which show that prices have broken a multi-year uptrend. Also note the 130 price level is is important from a Fibonacci perspective.