The 2nd of 7 open gaps since December has been closed and the 3rd gap zone has been entered (10:50 am, 3/3, GLD 88.98). The 50 dma is below and near and will touch the next gap at around 88/89 shortly. A bounce from here to the upper declining trendline (60 min. chart) should be looked for. Meanwhile, the USD has broken out above important horizontal resistance and a retest of the breakout might coincide with GLD bouncing to the declinging trendline in the 60 min. While the USD and GLD have been rising together for a couple of months, this could now be over and they may revert to their normal inverse relationship. Overall, with the major markets so weak, if the DOW and S&P500 have a capitulation decline, GLD and GDX will likely go along for the ride. Of course, that would be a significant opportunity.
-MK
http://stockcharts.c...88445&r=898.png
http://stockcharts.c...32941&r=953.png
http://stockcharts.com/c-sc/sc?s=$USD&p=D&yr=0&mn=6&dy=0&i=p87749167446&a=153168062&r=927.png
2nd GLD gap filled, entered 3rd gap zone
Started by
Mike
, Mar 03 2009 10:52 AM
1 reply to this topic
#2
diogenes227
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Posted 03 March 2009 - 01:02 PM
Really good call on these gaps. Hope you're short. And like the chart and analysis too. By "significant opportunity" I assume you mean the ride down?
Good trading to you. 
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