Below are charts of Goldcorp Inc. (GG), streetTRACKS Gold Trust (NYSE:GLD, the Gold ETF) and the PHLX Gold & Silver Sector Index (XAU). Not surprisingly they look similar. XAU is a little bit stronger and has been able to climb above its 50-day moving average. GG and GLD actually look like decent shorts to me if they take out this week’s lows. All the charts are very overbought so a dip or consolidation wouldn’t shock me.
Having said that, I don’t know if I’d trade gold based solely on the technicals — it’s so tied to world & economic events/developments…
Tx mike for the analysis as per my request.It is really useful.
Stochastic overbought for gold, XAU etc. on the daily chart doesn’t mean anything. Following trend lines and selected EMA & MA is better.