Gold Clears 200-Day MA

Gold as represented by the SPDR gold trust ETF (NYSEARCA:GLD), finally cleared its 200 day moving average today. I’ve mentioned the miners and gold a few times on stocktwits since early August, and I believe a bottom is being put in here for the metal. Silver has also been acting very well (As noted by JC of Allstarcharts.com) and lends credibility to the recent move. The miners tipped off this move as they surged well ahead of the metals. $SLW has rallied almost ten points (or 40%) in the past month and gained much of this before silver even got started.

Short term of course, the metals and the miners are extended. Looking at the chart below, its clear to see that $GLD is pulling into some resistance and may encounter some selling soon. However, in the grand scheme of things, it remains in a larger trading range and has plenty of room before hitting the top of the range near $175. This coincides with this years highs and a resistance level from last year. $GLD looks like it is headed for at least a test of this area and maybe more. The ETF has respected the $150 level as support on a few occasions and the recent emergence from the past three months narrow range could be cementing a bottom.

With $GLD clearing its 200-day moving average after being extended, it is likely do some backing and filling. However, it appears there has been a change in character for the metals and buying the dip may be the way to go moving forward.

 

Good Trading,

Joey

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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