Saturday, January 9, 2016

Gold ETF (GLD) May Face Major Falling Resistance Within Expanding Wedge (weekly chart)

click chart to enlarge

I decided to take a fresh look at GLD's weekly chart. The above chart still includes the ascending triangle and associated long-term support line (long green line) that GLD recently moved up off of.  

However, perhaps more importantly GLD also appears to be constrained by resistance imposed by a large expanding wedge (blue lines) that is falling in price. 

If the expanding wedge's overhead resistance (upper blue line, currently at about $108.40) cannot be broken and current support does not hold (solid green line), GLD could possibly fall in price to the base of the expanding wedge, which is currently about $77/share.

Of course, on the other hand, GLD could break up and out of the expanding wedge, a pattern that has led GLD down since 2012.

What will actually happen? There is no predicting the future. One can only build strategies based on what is known. Stay tuned.

Please remember that this is not investment advice. You alone are responsible for your investment decisions. See disclaimers below and elsewhere on this website.

Not Investment Advice | Important Disclaimer: 
The content in this article, including the identification and discussion of any specific security (e.g., bond fund), is NOT meant to be and should NOT be construed and/or used as investment advice. This article is for general information and educational purposes only. Please read the Disclaimers  for in their entirety. The U.S. Securities and Exchange Commission website has guidance on selecting an investment adviser.

Financial Disclosure:
The author/publisher has no position in Gold at the time this article was written. This position may change depending on future price action.

Base Chart Provided Courtesy of  Analysis and Annotation by JunkBond (all rights reserved)

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