Major Breakout for GLD
by Sam Collins 10/07/09
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SPDR Gold Shares (GLD) -- This exchange-traded fund (ETF) seeks to mirror the price of gold bullion.
Following a rise from less than $40 to more than $110, GLD spent most of 2008 in a downtrend, which reached $66 in early October. Since then, it has tracked the price of bullion and rose to just below $100 in February.
But, along the way, it flashed one of the most respected bullish signals, the gold cross, which usually precedes a major advance.
On April 9, at $86.33, I said, "Following its run to $100, GLD pulled back to support at the 200-day moving average where it is about to issue a positive signal from the stochastic. Shares purchased now could reward the buyer with a move to $125."
Yesterday, GLD leapt through resistance on a breakaway-gap with huge volume.
This breakout from a major resistance zone tells us that GLD has the potential of making a major advance.
The trading target is raised to $130.
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