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Gold Pushing Above Resistance


As we speak the streetTRACKS Gold Shares (NYSE: GLD) ETF is pushing above its 11-month resistance line, which could speak a powerful upside thrust. On the other hand, the first attempt to hurdle such a powerful resistance line can be elusive at first, if the underlying advance expended considerable energy just to get there. In this particular case, the GLD is pushing 68 off of its 3/05 pivot low at 62.62 -- a 8.6% gain in a 5-week period which could still generate considerable upside follow-through but also might need some R&R. In a "normal" market environment I would be looking for the GLD to pop to marginal new recovery highs in the 68.10/40 area, followed by a pullback into the 66.50/00 support area. In an "abnormal" market, where the dollar is plunging, or some other catalyst is causing a flight to "safety," then the GLD could just keep on keepin' on ... to the upside. Right now, I would rather watch than chase this strength.
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