Friday, May 1, 2015

GLD Gold ETF Weekly Chart

GLD is a long gold ETF. Ditto IAU. DGP is a double gold long ETN. Thus, the GLD, IAU and DGP and gold price charts and technical analysis are all the same. DGZ is a gold short ETF and DZZ is a double gold short ETF. Any triple ETF and ETN's should be avoided in trading.

The GLD weekly chart shows three positive divergence bounces occurring for gold since the beginning of the year (three arrows). Price cannot gain upside traction, however, and the money flow drifts lower for the latest price move over the last month. The lower green trend line is at 110 which remains in play.

The purple dots show price under the 20-week MA under the 50-week MA under the 200-week MA so a mean reversion higher occurs. This set-up is in play again now but price may want to slip a bit lower, even tag the 110 trend line, before it is over extended enough to the downside to create a bounce higher. Price may need a few days or week or so to settle in this 110.0-113.0 range

The GLD daily chart is the same as the previous gold chart. GLD drops under its lower band on the daily chart at 112.88 so the middle band at 115 is in play. GLD fills a gap at 112.50 from mid-March. Overall, the price action should favor the bulls moving forward for the weeks ahead although in the near term gold price may need a few days to settle at a bottom. Gold is in a choppy sideways pattern which makes it more important to try and wait for price extremes before placing a bet either long or short. Gold bears win under 110. Gold bulls win above 116. A move towards 110-ish with the indicators in positive divergence would set up a nice recovery bounce. GLD is currently at 112.63. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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