Apr 20

Gold at New 11-Month Highs

by Mike Paulenoff, Fri April 20th, 2007

I 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.

Chart

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!