Tuesday, March 19, 2013

GLD - what's next?

In the previous post on GLD [here], I expressed my concern that GLD is not doing what I typically find with such a chart. I had been expecting GLD to skyrocket and all it could muster was a pump overnight followed by selling during regular hours. Not a very bullish chart.

I wanted to see buying during regular hours. Buying in the face of sellers. The chart below shows what I mean. Start low and rise during the day.

After watching today's action, it appears at least that the weak shorts are trying to cover. The current pattern should be followed by a strong day tomorrow as the daily candlesticks grow longer in a wave 3. I am posting some of my targets in blue rectangles. These are based on fib extensions. Though GLD has not been tracking the extensions to pennies, it is close enough.

How long will this go on? If consider Feb 20th as the end of the correction, could go 160+ before the price starts retracing.

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