While there are many ways to invest in gold, a popular form is through the Gold Trust ETF (GLD). Since November, the ETF saw a good run from 70 to high 90′s, but, like every great run, GLD’s looks to come to a stop.
Just looking at the chart alone, we can see a rising wedge (learn more) has formed. This is bearish formation and makes me believe the ETF has nowhere to go but down. Lets also combine that with the fact that all these crucial supports and the 200 day moving average are converging in the same place, which makes for either a good support (on a bounce) or a new resistance (on a break).
A break below the resistance could see the ETF free fall to the mid 70′s (i.e. 74).
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