GLD Ready to Mount New All-Time High

By Sam Collins,  May 23, 2011, 03:39:59 AM EDT

SPDR Gold Shares (NYSE: GLD ) - This exchange-traded fund (ETF) seeks to replicate the price of gold bullion minus the fund's expenses.

GLD had a terrific run from $80 a year ago to the recent new breakout high at over $153. But profit-taking and a stronger U.S. dollar resulted in a pullback to its 50-day moving average.

However, on Friday, buyers emerged and drove the closing price through a bullish triangle , closing it above its 20-day moving average. The strength also triggered a buy signal from the slow stochastic. It is likely that this latest round of buying will lead to a new high of $155 to $160.

Since commodity ETFs may be subject to greater volatility than traditional ETFs, they may not be suitable for all investors. Traders should enter stop-loss orders to protect against significant losses.

Trade of the Day SPDR Gold Shares (NYSE: GLD)

Trade of the Day Chart Key

If you have questions or comments for Sam Collins, please e-mail him at asksam@investorplace.com .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Investing Ideas, Stocks

Referenced Stocks: ETF, GLD



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