Wednesday, March 14, 2012

GLD Headed to $200

SPDR Gold Shares (NYSE:GLD) — This exchange-traded fund (ETF) seeks to replicate the price of gold bullion, net of expenses, and is most accurate in its pricing to gold since it is the only ETF that holds physical gold.

GLD rose from around $120 to over $188 last year, but since the double-top of August/September, the trend has flattened with support at about $150 and resistance at $175. However, a closer examination of the trading pattern reveals a reverse head-and-shoulders with the neckline at $175.

Pullbacks have been supported at the 200-day moving average where GLD is now. The stochastic flashed a buy signal last week, and if the neckline is broken, the target for GLD would be $200.

Trade of the Day -- SPDR Gold Shares (NYSE:GLD)

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