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Thursday, December 20, 2012


Lets see how these ETFs are doing.  First up is the GLD daily chart.

GLD is testing the Nov. low and its 200 SMA.  There was a very high volume bar yesterday that was also blue.  That means it closed below the lower Bollinger band making price extended.  Was that some kind of capitulation event yesterday?  There is a double bottom pattern here, but it is certainly not textbook.  The retest is supposed to have lighter volume, not the heaviest volume bar of the entire move down.  It could still work out though.  This looks like a point to watch for support to come in.

Here is the daily GDX chart.

GDX is testing support again for a third time.  Unlike GLD the volume has dropped on each retest.  There isn't any real sign of accumulation though.  The only big volume up bar was the day of the FED meeting with more QE and that failed right away.

Both these ETFs are at potential support, but neither one is clearly making a bottom that I can see.  They are both in position to watch.  I would really like to see some kind of reversal pattern to the upside here and soon.  Break downs in these charts have some room to run should that be the outcome.


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