Friday, December 16, 2016
GLD Gold ETF Weekly and Daily Charts
The gold charts adjust after the Fed decision this week. GLD is the gold ETF. The US dollar index jumped higher slapping gold in the face. On the daily chart, price falls through the bottom standard deviation band. Price is way overextended to the downside and needs a mean reversion. Positive divergence (green lines) remain in play for all the indicators. The RSI sinks to a new low so that may create one more jog move up, then down, then up and away in this daily time frame. The 111 should be in play over the coming couple weeks.
There is momentum in the markets and the gold weekly chart shows that to the downside. Look at that steep slide. A poor soul bot gold at GLD 125 six weeks ago and now it is at 107 and he is eating cat food for dinner. Pity the soul that went long at 131 in the summer time. GLD came down to fill that first gap from February (brown circle). There are a couple other lower gap fills needed.
The stochastics are oversold and positively diverged on the weekly chart which jives with the universal possie d on the daily chart so a bounce should be on tap in the near term. The RSI and MACD line are weak and bleak on the weekly chart, however, so price should roll over lower for the weeks ahead. So a bounce should occur over the coming days or week or two, but then softness will return in January. Any long trade should only be considered from a very short-term perspective. Keystone has not entered any long in gold as yet based on the possie d on the daily chart but probably will over the next three days. 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.
Note Added Saturday, 12/17/16: GLD is at 108.05. The low last week was 107.00. Gold lost -2.1% last week and is at 1137. The low last week was 1124 and high at 1168 so these values are important for the week ahead.