CLICK ON CHART TO ENLARGE
Gold ETF (GLD) is dueling with Dual resistance at (1) at this time. This is a key test of resistance for GLD as it has declined after hitting the top of channel (A) at $1,900 per ounce. Ideal buying point would be the bottom support line of channel (A). Should GLD break this dual resistance, it would have to be viewed as a positive event.
Thanks Chris – I totally agree with your remarks about the euro/metals correlation… gold looks bearish on a chart, but indeed should rally as the euro seems likely to do so !
Belsha…For sure from the April highs in Silver, the play has been short Silver over Gold.
With the patterns at hand in the Euro (falling wedges) and some of the largest short positions in the Euro and Franc in years and Silver close to a 30-year Fibonacci support line I am concerned about shorting both of the metals here.
Both metals are within a couple of percent of key breakouts.
Chris
Chris, do you still think it is better to short silver (ZSL) than gold (DZZ) ? It sure was last year, but SLV has underperformed GLD so much these last months that GLD seems to have more potential to the downside?