Reader Request: GLDby Woodshedder on December 16th, 2007 at 8:52 pm |
A reader (sorry, can’t remember who) asked about (GLD: 82.18 +1.01%) forming a triangle.
It certainly seems to be, although a case could be made for starting the bottom line in the October gap-up, which would make the triangle not-quite-so-pretty as I’ve drawn it. Keep in mind where one draws this bottom line is somewhat more subjective than the upper line.
Both Stochs and RSI(2) are in the neutral zone, with the MACD slowly moving towards a bullish crossover. GLD is finding support at the 50 day moving average. These are all bullish.
The triangle looks to be complete before 2008. Because these are typically continuation patterns, and GLD is consolidating a run up, my guess is GLD breaks out to higher prices.
Thanks.
December 18th, 2007 at 8:15 am[...] The GLD exchange traded fund has just broken out of a triangle. Triangles tend to be continuation patterns, which means (GLD: 81.39 +1.56%) should continue moving on up. Read a previous post on the GLD triangle here: Reader Request: GLD. [...]
December 26th, 2007 at 11:13 am