Taipan Financial News Chart of the Day

StreetTracks Gold Shares (GLD)
Adam Lass, Senior Editor, WaveStrength Trader
October 6, 2006

Why a chart on GLD? It’s an excellent proxy for tangible gold that allows a technical analyst to apply trend, volume and delta studies.

The chart clearly shows both gold’s overall falling trend and five clear sell signals within that trend, followed by falling arcs marked in red.

We are only halfway through the fifth falling arc. Look for support at the 61.8% retracement marker at $54.10. This would equate roughly to $541 gold.

Should this level fail to hold, both gold and the GLD would fall into what is humorously referred to in technical circles as the “gaping pit of hell”: a sudden drop from the 61.8% to the 100% retracement marker at GLD $44.25/gold $442.

For more from Adam and the WaveStrength Trader team, including the easy 2-step system to turn $1000 into $11,500 for you, check out our special report on options made simple.

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