GLD made a new intraday high, but fell back to close above the important 114.13 level. That makes 2 closes above what has been serving as resistance. We also had our 2nd day breach of the Bollinger band. The upper boundary is now serving as resistance and is designed to keep prices contained within 95% of the time. Therefore, either price can be expected to reverse or go sideways for a period of time to come back into the band or the band must rapidly expand to contain the price action. The Bollinger band serves as a resistance and support tool, but also as a reading of volatility. Contracting bands indicate lessening volatility of price action, while expanding bands illustrate higher price volatility. Volume was good for the 2nd day in a row lending credence to the breakout. RSI is moderate and not yet over sold. Stochastics are over sold with a reading greater than 70 and we should be looking for the embed (3 days above 80) as indicator of increasing upside momentum. Stochastics while being an over bought/over sold indicator, they are also a momentum indicator and give important signals when achieving or losing an embedded state.
3 Mo: "
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The 6 month chart shows the next price objective of 119.54, the previous all time high. The only resistance between will be the upper limit of the Bollinger band. When prior resistance is breached, it becomes support. So, 114.13 is now the first support zone. Further support comes at the 18 day moving average of 112.55. Finally an area around 110 containing the 45 and 100 day MAs and the Bollinger band is providing a serious support foundation.
6 Mo: "
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And finally the perspective chart...
One Year: "
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