Fri April 20th 2007
Gold at New 11-Month Highsby Mike Paulenoff,
www.MPTrader.comI have no idea why gold (the GLD) is rocketing today, especially after yesterday's decline and close back beneath an 11-month resistance line -- other than the fact that this is a strengthening bull market in the sector. Increasingly, for that reason along, perhaps I must refrain from trying to overly "fine-tune" the near-term wiggles in the GLD and consider remaining 50% long at all times unless and until a significant support zone is violated.
As for today's strength, the GLD has popped to new 11-month highs, which if sustained throughout today's session, will argue for a run at the top of the Oct-May channel near 71.
Only a decline and close below 67.70 will indicate that today's strength was a bull trap -- with a corrective process that will again visit the 66-65 area.
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