Gold ETF Looks to Be Headed Lower
10/11/2010 10:35 am EST
Shares of the SPDR Gold Trust Shares ETF (GLD) have suffered a bearish outside reversal.
Shares of this widely traded ETF have risen almost non-stop since early August. When GLD reached the $130 level, it was at strong resistance but seemed to fly by it on Tuesday and Wednesday of last week.
But after strong gains in early trading on Thursday, October 7, GLD reversed and sold off hard, closing near its lows and doing so on almost double its normal daily volume.
Bearish outside reversal days are almost always followed by more declines. In the case of GLD, those declines could be fast. Then again, GLD is so volatile that it could again rally. But we are looking for downside in coming trading days.
If GLD closes below $128, it will confirm the reversal.
By Frank Kollar of FibTimer.com