Sunday, September 12, 2010

Technical analysis XGLD

Here is the chart of the World Gold Index (XGLD) since mid July with a closing price of $1245 on Sept 10st, 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/Bearish
  • Stochastics K line crossed over the D line and is below the 80 level at 68. Bearish 
The price dropped below the 15 dma on Friday and moved up to close right on it for support.  If Gold continues to decline, there are a few areas of support, depending upon the indicator that is used.

1227.5 level as that was the previous high in Dec09.  
The last break low was at 1238.10 on Sept 3rd.
The 50 and 100 dma is at the 1212 level.
Bollinger band is at the 1216 level.

Gold has appreciated from the 1160 level in late July to the 1260 level in early Sept, about $100 in just over a month. We may experience some small correction which has been the 'norm' with the Gold price after a run up.  As mentioned before, every time Gold has pulled back since 2002, it has recovered and progressed to new highs.  I would expect the all time high of 1266.50 to be breached before the end of the year.

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