Gold Action Is Bullish
02/02/2010 1:40 pm EST
In last Thursday's Trading Lesson (click here to read), we discussed the support levels for GLD, concluding that a retest of the lows and then a turn in momentum could complete the correction. The RSI3 turned higher Monday, and the action so far on Tuesday is positive. A break in the downtrend would complete the triangle formation, suggesting that the uptrend has resumed. The Fibonacci and chart formation targets are in the $123.50 area. Once the downtrend is broken, I would look for a one- to two-day pullback for a good entry point.