The Gold ETF (GLD) 07-20-10

The Gold ETF closed the day at 116.65 up 0.92.  There is still downside pressure being applied to price.  Price found support at the first price objective for the longer cycle move down.  To start a major move higher price would have to go through 121.41.  There is a shorter cycle move that would be started with a price move through 117.36 and then the first price objective for that move would be 119.  This short move is not shown on the chart.   Other than that very little has changed since the last post on gold and gold futures. 

 

The Gold ETF (GLD)

The Gold ETF closed down 7 cents at 118.23.   GLD seems to be in never, never land right now.  In order to restart another major move higher it would have to go through 121.45 for a short cycle move and there would be resistance at the longer cycle Price objective at 119.62.  The first price objective for this move higher would be 126.81.  For the move down to restart price would have to go through 117.28 and then the first price objective for the move down would be 115.35.   Downside pressure is about to be applied on this chart if price remains unchanged or is down on the close tomorrow.   The August gold future (GCQ0) has been in a tight trading range for the past  nine days and could be a break in either direction soon.  At this point being in cash could be the best alternative until a direction is clarified.  If you are either long or short gold at this time I would look to hedge the position.   When this breaks out in either direction the volatility could be extreme with a rush to buy or with panic sells.  So as they say on many packages, “handle with care”.