Support forming in Gold ETF (GLD)
GLD Daily Chart
GLD sold off last Friday and swept away half the gain made in the first four days. So far the price remains inside the downtrend channel with no signs so far for GOLD to begin a new rally.
But a support level seems to be forming around $159-158 range. This range will defend the unfilled gap at 156.47.
Recently the competitive devaluation of the Japanese Yen helped to slow the speed of gold’s decline. If GLD fails to break down through the 159-158 support zone, the rally should resume.
Especially if GLD goes down first this week, we should watch the support level carefully and start to focus on the buying side instead of the short side.
For early aggressive traders who want to be on the long side, 154.50 stop loss should be used.
For a more detailed analysis of the outlook for gold this week, visit www.naturus.com/gold. No registration required.
