GLD - Could offer something in the near future

[kwagga]

GLD has been trading in a very tight range R 72 - R 76 for the last few months. This created some very strong support and resistance on this ETF. If GLD breaks either one of these support and resistance levels I believe we can see a strong move in either direction. My money is on the upside, seeing that a healthy correction in the equity market is long overdue and GLD will serve as a low risk wealth protector. Much like the function it served from the middle of last year to the beginning of this year. The only spanner in the works could be a depreciating dollar, but I also think the dollar might be oversold and we could be in for a correction. GLD is currently trading at R72.66. I've bought at R 73.80 with a very tight stop loss that I believe won't trigger in the near future. A lot of patience is key to trading this EFT. Those willing to wait for a break above R76 could be well rewarded. This is only my opinion, so do your homework and make up your own mind.

[Salv]

My question here is, is it possible to do TA on an EFT that is determined by 2 variables (Gold price, and dollar). Surely it is better to do TA on the gold price and dollar individualy, and make a decision based on that. My reason for this statement is that because GLD is influanced by two variables, whp are not seeing the whole picture when looking at a GLD chart? Still new so i could be totaly wrong, but thats just my logic. Any comments ?

[kwagga]

The trading price of the EFT already discounts the price of Gold in $. You can use the chart as it is, but need to consider both the gold price and the dollar to make future assumptions on GLD.

[Surf_Rat]

Hey this one is all about the exchange rate mate you have to decide if the rand goes to 850 a dollar where will gold be me think range bound to 950 as resistance at 850 so 850 x 950 dollars gives about 8000 so my target is about 80 rands nice thing is at 72 rands the down side is capped to some extent least you got time to react not like the mines where the moves do not follow maths one think more trust worthy than technicals is math like 1+1 can only equal 3 if you are a prof or a nut case

[SKALA]

Not realy a gold bug, but went long gold this morning on GT247 with a "take profit" at 1018.

[Sfiso_1]

One of the frist things you learn about TA is that the only thing that matters is the movement of the price. Therefeore you can only use the ETF chart as it does not matter what effects the price according to TA.

[Salv]

Sfiso i hear what you say, but in the case of an eft the price is directly controled by to known variables, gold and dollar, which are inturn controlled by unkown variables, personally i would rather work with gold and dollar independantly and then make a decison rather than the GLD chart.

[#8]

the rand is weakening big time last few hours

[kwagga]

Talk about sweet timing (not that I believe in trying to time the market). GLD had broken R76, so if we close above R76 today, I believe we might get a lot of momentum up. Been looking at USD and Gold, and I think we've got the right mixture here for quite a move. Again, Gold is quite a sentimental thing so again don't follow my advice, do your own homework and then make a decision. This is just my opinion. Happy trading.

[saash]

Well my GLD longs are looking pretty neat today :-)

[#11]

NOT ENOUGH :( We went up from 7400 to 7700, I want a bugger jump :):):)

[#12]

still following the pog maybe?

[Goldbull]

just look at the 3-year GLD chart...speaks for itself

[kwagga]

Dollar bouncing off resistance and Gold price in dollar not responding that much. GLD breaking some resistence at R77, now trading at R77, 40 - This could become interesting. Watch this space.

[kwagga]

You know Kwagga, it's a pity some many people are not interested in this EFT. It's really moving quite nicely. R 78.60 and counting. Really nice hedge against a depreciating rand.

[kwagga]

I can't agree with you more kwagga. Well done.

[kwagga]

Thanks kwagga.

[kwagga]

R81.50 and counting - Maybe time to consider taking some profit off the table Kwagga. What a brilliant run though. 11% profit. We now have a little overbought GLD, which means we could pull back a little. Today will be an interesting day.

[kwagga]

Took profit at R81.99 today. I'm happy.

[kwagga]

Well done Kwagga.