Intraday Setup: GLD Breaks Out of Triangle
Wednesday, December 26, 2007 at 11:13 am
The GLD exchange traded fund has just broken out of a triangle. Triangles tend to be continuation patterns, which means (GLD: 107.95 -0.60%) should continue moving on up. Read a previous post on the GLD triangle here: Reader Request: GLD.
View the current chart here: GLD Chart
Be aware that the RSI(2) is nearing overbought. Also, although this is a picture-perfect breakout, I am wary to trade on technical signals generated during low-volume holiday-shortened weeks. All that being said, I established a position today. My stop-loss is set at $77.77
It looks like GOOG is setting up a triangle also.
GLD was “sold into strength” today, according to the WSJ MoneyFlow Report
jakegint: would you kindly explain what that means - “sold into strength”? do u mean like while folks were selling GLD, more folks were buying, so that is bullish? thanks
bylo- selling into strength has a bearish connotation.
What the WSJ is reporting is that there was more volume on downticks than upticks, yet the stock price was still up on the day. They call this measure of negative money flow “selling into strength.”
thanks woodrow and, if you accept, I take back the comment about your Christmas tree in Fly’s basement - no way for me to act during the holidays, sorry.