SPDR Gold Trust (ETF) Coming To A Crossroads

gold timeRick Pendergraft: The last four years have not been good for gold investors, as the price for the metal has fallen from a high of $1923.70 per ounce to a recent low of $1,080 per ounce.

Strength in the U.S. dollar has contributed to the fall for the past year, but that was not the case in 2013.

Given the multiple sovereign debt issues playing out around the globe (Greece and Puerto Rico most prominently), it is hard to believe that gold has continued to fall.

Normally investors run to gold during times of financial uncertainty, but that hasn’t been the case in recent months.

With the price of gold falling so sharply, the SPDR Gold Trust (NYSEARCA:GLD) has seen several items appear in its charts. On the daily chart, we see that the 10-day RSI recently went down to 10.

That is the most oversold reading for the gold ETF since its launch in November 2004.

You can also see that the slow stochastic readings are in oversold territory and recently made a bullish crossover.

GLD Daily Wyatt

When we turn our attention to the weekly chart, we see a downward sloped trend channel that has dictated trading for the last couple of years, and that the GLD fund is approaching the bottom rail of the channel currently.

I don’t normally like buying stocks that are in a downward sloped channel, even if they are getting ready to hit the bottom rail.

We also see that the weekly oscillators are both in oversold territory, just like we saw on the daily chart.

GLD Weekly Wyatt

Looking at the monthly chart we can see that the $100 level has entered the picture, and it could serve as support for the GLD.

After the GLD launched in late 2004, the first resistance level it faced was the $100 level  in March 2008.

The same level acted as resistance again in February 2009, but the fund broke through the resistance in September of that same year and it never looked back.

(…)Click here to continue reading the original ETFDailyNews.com article: SPDR Gold Trust (ETF) Coming To A Crossroads
You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)