GLD Watch 12/05

Gold has really been on my mind lately, so I thought I'd start a GLD watch. I'll discuss "Why Gold?" in a later post, but right now I'm just hoping to catch the ETF when both the weekly chart and daily chart signal "buy". I'm not an expert technician, but know some high level stuff, courtesy of stockcharts.com. I personally like RSI, Bollinger Bands, MACD, ADX.

Weekly Chart
From the weekly chart below, we can see a heavy decline (aka buying opportunity) over the past few months of turmoil, with strong support at 65. MACD shows that we might be close to a trend reversal or maybe another false alarm. RSI says we aren't overbought which is good. ADX shows we are in a slightly growing downtrend. Overall, it seems like there could be a a good entry point soon.


Daily Chart
The daily chart on the other hand suggests that we have some downside in the next few days or maybe weeks. If it holds, that could be a double bottom or a higher low, which are bullish signs.

Looking at the Bollinger Band, I'm guessing there will be some consolidation soon maybe around 70 and 72, so I'll be trying to buy some in this range... guessing early next week if there's hangover selling from the unemployment numbers.

Am I being too greedy or too early? Time will tell.