Tuesday, October 5, 2010

GLD/Gold at another all time high

GLD SPDR Gold Trust on Oct, 5th, 2010 @ 8:40am PST
The GLD chart above does not need too much technical analysis as most people can read it for themselves. (GLD tracks the spot price of Gold and is roughly 1/10 of the price).  Gold is in a major bull run that started on July 29th, 2010 at $113.50 for this trust.

Stochastics are embedded and upside strength going forward is still intact. All of the moving averages are in line with a typical bull run.  There was a break in the stochastics on Sept 9th where the K line dipped below the 80 level and the D line followed. Since then, they have both recovered back over 80 on Sept 21st and have been embedded.

Most traders know that every bull runs come to an end at sometime and need to get out. A pullback sometime in October is a possibility and consolidation before another bull run in November. Long term Gold investors can sit back and enjoy the current run.

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