Gold prices took a 3rd run at new highs and fizzled out again. Looks like it may take a 4th attempt.
Earlier this month, I wrote an article about the need for a Gold “refresh”. The precious metal was trading heavy and it appeared in need of a quick selloff that could attract buyers once more.
I believe that this refresh is underway… and our key tell will be what happens at the 40-week moving average (similar to the 200-day moving average). We are within a few percent of this area and what happens there will be telling. Today’s chart (using the ETF $GLD) highlights this trading setup.
Note that the following MarketSmith charts are built with Investors Business Daily’s product suite.
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$GLD Gold ETF “weekly” Chart
The gold refresh is underway and should help to alleviate some of the recent “heaviness”. The best scenario for bulls is that buyers step up near the 40-week moving average in the $172-$176 support area. If this levels fails to tell, then a quick whoosh into price discovery may occur. Either way, I’ll be watching.
Twitter: @andrewnyquist
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
