Reader Request: GLD
Sunday, December 16, 2007 at 8:52 pm
A reader (sorry, can’t remember who) asked about (GLD: 110.34 0.00%) forming a triangle.
It certainly seems to be, although a case could be made for starting the bottom line in the October gap-up, which would make the triangle not-quite-so-pretty as I’ve drawn it. Keep in mind where one draws this bottom line is somewhat more subjective than the upper line.
Both Stochs and RSI(2) are in the neutral zone, with the MACD slowly moving towards a bullish crossover. GLD is finding support at the 50 day moving average. These are all bullish.
The triangle looks to be complete before 2008. Because these are typically continuation patterns, and GLD is consolidating a run up, my guess is GLD breaks out to higher prices.
Thanks.