GLD Gold ETF 2-Hour Chart; Overbot; Rising Wedge; Negative Divergence

The GLD weekly chart was posted the other day and that chart is topping out with negative divergence. The GLD 2-hour chart top was described in that post so it is a good idea to show the chart and the neggie d spankdown. Lots of folks were probably surprised to see gold unresponsive during the stock market selloff yesterday. You will have to give it a few days to see how things shake out. The gold charts are agreeable to a rollover and pullback but the negative news in the market may send folks to safe havens and buoy gold.

Perhaps, however, investors and traders are losing confidence in all asset classes realizing that all prices for all goodies be it stocks, bonds, art, antique cars, vineyards, real estate, collectibles, even metals, etc..., are pumped-up and supported by the Federal Reserve and other global central banks money-printing policies. Schemes is a better word. Maybe cold hard cash in your hand will be the only desirable asset for the coming weeks, months and perhaps a year or two. Cash was king during the Great Depression and disinflationary and deflationary periods.

Anyhoo, the chart shows GLD moving up and up printing matching or higher highs, thus, the indicators can be studied to see if they are negatively diverging to show that price is running out of gas, or not. The other day when Keystone mentioned the GLD 2-hour remember he said the MACD was still sloping higher and that may create a couple more hours of upside juice, which it did the next morning, and that was the last hurrah. Look at the selloff before that (red arrow on the left) The indicators were neggie d so you knew that price would be spanked lower but it would come up again because the MACD was still long and strong, and price did for yesterday's top. The rising wedge pattern is bearish and the RSI and stochastics are overbot agreeable to a pullback.

As previously mentioned, be leery of gold going forward; it had a great run. It is set to drift lower for several weeks so you can pick where you want to exit any longs and enter shorts going forward. The top above may be the top for the next few weeks. GLD can be shorted or GLL can be played long although it is traded more thinly. There are lots of other ways to play as well. GLD may initially shoot for that gap fill at 164-165 then the 162 support. It is interesting that there are no gold bears these days, only bulls. Any pundit talking about gold on the internet, television or radio, is saying buy, buy, buy. 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.