Chart Of SPDR Gold Share
My view on Gold ETF could be a little bit different from the gurus. Reading the technical chart of SPDR Gold Share, we see that the 10-day and 40-day moving averages work well in indicating the trend of the chart for the past one year.
When the 10-day simple moving average (SMA) crosses above the 40-day SMA, it signals to us that the price is going uptrend, and when the 10-day moving average cut below the 40-day moving average, it signals a downtrend.
Since November last year, the SPDR Gold ETF has already been going down trend after the 10-day moving average cut the 40-day moving average it fell from US$174 to as low as US$114.53. Since early July, we notice that gold price had stopped dropping and started moving higher. We see that the 10-day SMA started to cross above the 40-day SMA, which means that the downtrend has change to an uptrend. Currently, the SPDR Gold Share is facing a strong resistance at US$130. Once this level is broken, we might see further upside on this stock.
For those who worry that the fall will continue, do watch out for the US$122 support and set a stop loss below this level.
Posted by Andy Yew
When the 10-day simple moving average (SMA) crosses above the 40-day SMA, it signals to us that the price is going uptrend, and when the 10-day moving average cut below the 40-day moving average, it signals a downtrend.
Since November last year, the SPDR Gold ETF has already been going down trend after the 10-day moving average cut the 40-day moving average it fell from US$174 to as low as US$114.53. Since early July, we notice that gold price had stopped dropping and started moving higher. We see that the 10-day SMA started to cross above the 40-day SMA, which means that the downtrend has change to an uptrend. Currently, the SPDR Gold Share is facing a strong resistance at US$130. Once this level is broken, we might see further upside on this stock.
For those who worry that the fall will continue, do watch out for the US$122 support and set a stop loss below this level.
Posted by Andy Yew