October 30, 2006

Possibly a momentous day for GLD, the gold ETF.
After months of consolidation since the all time high 72.26 reached on
5/12/06, it gapped up today above 60 and in the process broke its falling trendline (shown in light blue on the chart).
Add to this the fact that it is right now above its 200-day Moving Average. And just to be cute, I could point out that the 14-day RSI has crossed over 55 which was a resistance of sorts.
Naturally this could be a false breakout. So we'll have to see what happens in the next few days.
But all in all not a bad spot to start nibbling at gold or slightly increase one's gold exposure.
Click twice on the chart above to enlarge.