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Tuesday, January 4, 2011

A look at Gold

Bunch of chatter on Gold today because of its decline, and rightfully so. The GLD is testing its daily trend/support.

Along with the potential head-and-shoulder taking place, the set up looks to want to break down. At least for the short-term.

With the daily trend broken, the next stop is the support via the weekly. The weekly 32 SMA has acted as support in the past, and the chances are high it will do so during this correction.

At the very least, a nice bounce from the wkly 32SMA should be expected. I may play DGP when this happens, but only for the pop.

(I am from the school of thought the world is getting functional again. With a functioning world, the demand for Gold declines.)

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