We shall see pretty soon as to the future course of gold prices, at least in the short term. I am still leaning on the odds for lower gold prices at some point in the future. I also continue to hold my targets of mid-to-low $1,500's on the price of gold and low $150's on the Gold Spider ETF (ticker GLD). This is as gold stocks point to lower gold prices, while the lack of any upside conviction in either the metal or the stocks tells me that it is still a sellers market.
With that said, it appears that the price of the GLD closed in or around a critical juncture. In the last year or so, the $158 (in or around) price point has served not only as a significant swing point, but has been a resistance and floor in certain time periods. Additionally, the price of the GLD is now sitting between two price gaps, one to the upside of $160 and the other to the downside of $157 in change. In the immediate short-term, meaning a few days, I would not be surprised if the price of gold closes the upside gap, possibly even alleviating the oversold condition on the stochastic. If the price of the GLD does close the gap, I would also expect it to fail to the upside, as upside volume has been lackluster for a few months now, and do not see any reason for this to change provided the technical backdrop (i.e. moving averages that are rolling over along with negative MACD, cash flow, and A/D). On the other hand, if the price of the GLD breaks the $158 price point, expect the price to head lower faster.
With that said, it appears that the price of the GLD closed in or around a critical juncture. In the last year or so, the $158 (in or around) price point has served not only as a significant swing point, but has been a resistance and floor in certain time periods. Additionally, the price of the GLD is now sitting between two price gaps, one to the upside of $160 and the other to the downside of $157 in change. In the immediate short-term, meaning a few days, I would not be surprised if the price of gold closes the upside gap, possibly even alleviating the oversold condition on the stochastic. If the price of the GLD does close the gap, I would also expect it to fail to the upside, as upside volume has been lackluster for a few months now, and do not see any reason for this to change provided the technical backdrop (i.e. moving averages that are rolling over along with negative MACD, cash flow, and A/D). On the other hand, if the price of the GLD breaks the $158 price point, expect the price to head lower faster.
No comments:
Post a Comment