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April 12, 2005
Gold Gets Boring
Both stocks and gold have traded in a tight range over the last two weeks. The Nasdaq has been caught between 2022 and 1968, while the Gold ETF has been caught between 43 and 42.20. There is a potentially bullish setup in gold and further strength would trigger a short-term bull signal.
After the February-March surge, GLD broke rising wedge support and declined to around 42.5. The move retraced 62% of the prior advance and this is normal for a correction. The two week range confirms support and a catalyst is required to confirm a reversal. Look for a move above 43 to get the gold bulls moving again.
Posted by Arthur B. Hill at April 12, 2005 06:56 AM