Gold – 23 Jun

Gold gapped down on the day and closed right at support from the 45 day moving average. You cannot tell from the the line chart that there was a gap, but I the next chart of GLD shows it clear enough. For some reason daily gold cannot be depicted as a candle chart anymore. The chart is neutral with a higher high and a lower low. The symmetrical triangle breakout was false and therefore suggests more sideways trading within a defined trading range of 1550 to 1486.

The gap can plainly be seen on a candlestick chart of GLD. The gap will fill like 95% of all gaps. Selling without leverage is really a dumb thing to do. Selling with leverage and stop is a smart thing to do.

Now with the preliminaries out of the way, We look at the charts for investors. PHYS is holding at 4% premium to NAV and holds only 100% allocated gold bullion. As with gold, the gap on the chart will fill, so there is no need for investors to worry, just hold until the gap fills and keep on truckin’. PHYS found support at the 20 day moving average where it closed on the day. The 50 day MA is moving up to provide additional support at 13.21. Below there is strong chart support around 13.16. Resistance remains at the pesky 13.68 level. The chart is technically neutral with a higher high and a higher low. Price is now at the bottom of the longer term uptrend channel. More sideways action is expected with the majority of price action occurring from the last 3 months between 13.10 and 13.75.

The Fibonnacci 38.2% retrace is providing natural support at 13.0. This level should provide a floor for the trading range this summer.

This entry was posted in GLD, Gold, Matrix Sentry TA, PHYS, Technical Analysis. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s