Will Gold and Gold Stocks Correct Further?

09/10/2010 10:10 am EST


Thomas Aspray

, Professional Trader & Analyst

Click to Enlarge

Gold and precious metals stocks corrected on Thursday and the short-term technical action suggests they can still correct further. The daily chart of the Market Vectors Gold Miners ETF (GDX) shows that major resistance in the $54.50-$55 area was tested before prices turned lower. The daily uptrend and good support are at $49-$51. We see similar action in the SPDR Gold Trust (GLD) as the recent gains have not been supported by higher volume as the OBV is well below its previous highs. The daily chart shows a potential rising wedge formation with good support at $118-$119.

Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.

Related Articles on COMMODITIES

Keyword Image
Rio Tinto: Copper Plus
09/13/2018 5:00 am EST

I think exceptional returns for the metals are a slam dunk for long-term investors who take advantag...