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Thursday, February 6, 2014

GLD and GDX 2/6

It has been a long time since I looked at gold.  When something has as severe a break as this they can be difficult to trade.  Lets start with the GLD daily chart.


It looks like GLD has come up to the down trend channel upper line.  Will it break above or be turned back again?  It seems like most of the time when something pushes on a trend line like this instead of being repelled quickly it ends up breaking through.  Maybe that will happen here.  How about a look at the GDX daily chart.


The mining stocks have already broken their down trend line.  Sometimes they lead gold, sometimes they don't.  They are currently consolidating like GLD.  I suspect they are waiting to see if GLD breaks out or not before deciding whether to continue up or not.

I don't know what is going to happen next.  However, it looks like something is about to happen.  These ETFs look like they are waiting for a catalyst to get them moving.  Whichever way that catalyst pushes them there is likely to be some follow through. 

Bob

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