GLD Next Leg Down

Today while looking through a few charts I noticed an interesting formation on GLD’s (the gold ETF) chart. Lets look at the chart:

GLD 02/12/13

GLD 02/12/13

As you can see here GLD has been forming a bearish wedge pattern as it consolidates from its last leg down. We believe that very soon once the wedge finishes building out we will see a move lower. Typically we use the MACD indicator to determine whether to buy or sell a security however in a case of consolidation like we see here this indicator becomes unreliable. We advice everyone to go short GLD with a price target of 150 which is where our last support level was.

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Posted Tuesday, February 12th, 2013 under Specific stocks.

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