We look at 3 GLD charts
Bullion.Directory precious metals analysis 10 February, 2015
By Terry Kinder
Investor, Technical Analyst
GLD had a nice run to begin 2015 but has since faded. We’ll assess the current situation with GLD in three charts.
Caught in a downward price channel
GLD, after having a nice run up from late 2013 to early 2014, has largely remained in a descending price channel, as can be seen in the chart below.
Although GLD got a lift in 2013-2014, it’s largely been in a downward channel since.
GLD is currently suffering from both a weakening in the Hurst Oscillator and the DMI. It hasn’t quite fallen off the wagon yet, but it has shown very weak upward momentum on the weekly chart as of late.
A pivot lower?
In the next chart, you can see that GLD has been sitting right around a pivot support level of $118.79. Should it be unable to hold that level, the next support level is $115.92.
GLD may fall through support at $118.79. If so, next support is at $115.92.
More cloudy days ahead?
Our final chart is the weekly Ichimoku Cloud. While price briefly climbed above the orange line in a sign of strength, it has since declined and is threatening to cross back under it.
The blue lagging line remains under the orange line, another sign of price weakness. Price has remained capped by the red outlined cloud above it.
The downward price trajectory for GLD is little changed over the past two years or so.
Ichimoku Cloud still limiting GLD price from moving higher.
It’s going to take something to change the downward momentum of the GLD price. Until it does, we should expect it to maintain the downtrend.
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