Feb 09

Gold at New Recovery High

The streetTRACKS Gold Shares (NYSE: GLD) have climbed to 66.38 so far today, which represents a new recovery high -- the highest print since July 14th high at 66.42. In addition, today's strength has hurdled the 62% Fibonacci resistance plateau -- that is the 2/3rds recovery level in the aftermath of the plunge last May-June from 72.26 to 55.05. Much more often than not, when a recovery exceeds the 62% level, the price structure continues higher -- towards a complete retracement of the prior decline, which in this case points to a revisit of 72.26. Be that as it may, my next optimal target zone is 68.
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Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!