Gold

Below is a daily chart of GLD, an etf that tracks the spot price of Gold. Last week we rallied up to a downward sloping resistance line. Some analysts were saying that we were near a breakout point in a long term pennant formation. Since then we have fallen back towards a shorter term support level at $81.75. I am suspect of the recent rally in Gold because of the long term trend and volume. We were in a Gold bear market for all of 2008, and only a break above the resistance line we make me think differently. Second, the 3 month rally we have had in Gold has come on relativly light volume. I think GLD will probably break below support at $81.75, at which point I would think about entering a short position.

GLD Daily