Stuck in neutral
GLD — the gold-based ETF — did not move too much last week. It formed a narrow range week (NR7) and continues fighting to stay above three resistance lines.
This week we may see GLD to make some gains in anticipation of the FOMC interest rate decision on Wednesday and some buying activities may show in hopes of a positive QE statement in the Fed chairman’s speech.
But the rally may not last very long, judging by the lack of advancing volume from recent data.
Based on the Daily chart, the contraction move from GLD in the last week and last Friday could lead to an expansion move.
GLD could pop up to 161.80 and reverse down from there, or could go down to 156.15 area before it bounces back up again.
Daily momentum indicators are neutral. GLD could go in either direction this week.
GLD ETF, week ending April 20, 2012
You can see the complete analysis for gold futures as well as the ETF, and the Naturus market outlook for other commodities and the S&P 500 — free of charge — by visiting www.naturus.com.
