Technical analysis XGLD

Here is the chart of the World Gold Index (XGLD) since mid June of this year with a closing price of $1249.40 on Sept 8st, 2010.    (Click on the chart for a larger view)

• Gold has made higher highs and higher lows since the July 28th low at 1155. Bullish
• The price is above the three moving averages of 15, 50 and 100. Bullish
• The 18 dma crossed over the 100 dma on 8/16/10. (Indicated with a white arrow) Bullish
• The 18 dma crossed over the 50 dma on  8/23/10.  (Indicated with a white arrow) Bullish
• The 15 day moving average is above the 50. The 50 day moving average is above the 100. Bullish 
• The MACD Histogram is above the center line and descending. Neutral
• Both Stochastics K and D lines are above the 80 level and are 'embedded'.  Bullish

 Gold closed $6.10 lower, but is still in an uptrend pattern with higher highs and higher lows. If $1238.10 is breached, the uptrend will be nullified. The 50 day moving average is very close to the 100 day moving average and may dip below. (Indicated by a yellow arrow) In a typically bullish uptrend, the 50 dma is above the 100 dma. 

The low of the day touched the 15 dma which is the first level of support. Because the stochastics are embedded, breaks may present buying opportunities.  It may be just a matter of time before we breach the last high made in June of $1266.50 indicated by the white horizontal line.