Disclaimer: Steelman's Technical Charts are my own amateur interpretations of technical charts and for informational purposes only and should not be construed as investment advice regarding the purchase or sale of securities, or any other financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities mentioned herein. Steelman's Technical Charts assume no responsibility for your trading and investment results.
Here I have a chart of the GLD that goes back to the July 2010 lows. If you have read my earlier post on the GLD I called a head & shoulders top and a target of 127.We were well on our way until Friday where we touched 127.80 and the troubles in Egypt broke out. Fridays candle looks like a short term reversal which could take us back up to test the 20 average. I still like the pattern and still have that 127 support. Also what makes me think we will get there is in blue is Fibbonacci retracements. The 50% retracement is at 126.44 and again the 200 daily average is rising and coming into that same area. I think we will test this area before moving back to breaking the Dec.highs.
Now here is a chart that shows the last 7 days leading to Friday's close. Fridays candle does not classify as a engulfing candle. Thursday open was 130.29 and its close was 127.92. Fridays open was 130.28 so we 127.92 and closed at 130.28. The body of Friday's candle was inside the body of Thursday candle To be a engulfing candle which is very bullish, Friday's open and close should have been outside of Thursday body. I am not saying that Friday is not a reversal but you need to see another candle before I will trade off this pattern.
Again this is my interpretations of technical charts and and you must consult with your investment consultant before doing any trades