GLD Revisited

The GLD and gold the metal made new lows recently. GLD in particular has seen volume continue to dry up. The new lows in GLD were made on low volume. This is technically something that I find encouraging from the standpoint of picking an entry in the miners.

I know, if you are a big time stock advisor, you will say that people are forgetting about gold. And that it is becoming increasingly irrelevant. From a technical aspect that is exactly what the charts tell me. And those who are short this chart are in increasing danger of getting squeezed, ie, who will they buy from?

With that said, an enduring bottom usually takes time to form and the sentiment takes time to change. A sharp short covering rally often has a catalytic effect on sentiment, however.

Here are the charts of GLD as a representative of the gold price and sentiment.

Control your risk,
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