SPDR Gold Appears to Be Basing
The SPDR Gold Trust (GLD) had been making a series of lower highs and lower lows since September 2011. The weakness continued through May, along with the weakness in the broader market, but the lows that month held above November's previous lower low and formed a triple bottom. This price action on this key level may have established a base from which it can break trend and begin moving higher.
The weekly chart shows the support line that defined the strong uptrend in 2011. That line was broken in December, then retested in March this year. The support-turned-resistance line held, a lower low was made, and price continued to deteriorate. On this time frame, moving-average convergence/divergence is trending lower and below its centerline, but the relative strength indicator, while still below its 21-period signal line and centerline, has flattened out. Chaikin money flow, which has been declining along with price, is attempting to hold its centerline, and money flow will be crucial to the next potential test of resistance and the sustainability of a breakout....199 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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