Gold (GLD) Testing Support
Closed at $110.84 dropping 7% over the last five trading days. Looking at the chart below the uptrend is still intact and the emotions towards the metal are still high. The test of support near the $109.50 mark is holding and the question of the day is, will it hold and gold rise again to test the high? There are many who believe it will.
Volume has been nearly double the average over the last five trading days showing the emotions attached to this trade/investment.
The ETF is trading below the 20 day moving average, but above the 50 day. The 50 day is close to the next level of support near the $108 level. The trend is up and the pullback is well within reason for the accelerate move to the upside. We have stops currently just below the 50 day moving average and expect a bounce off support near term.
The breakout in August above $95 was the beginning of the current accelerated uptrend. The current target is $120 short term.
As with any investment the key is a defined strategy and entry point, risk management with a define stop, and focus with a define target. Entry, Exit, Target on every investment - before you invest.
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