GLD (the Gold ETF) made an all time high yesterday. If you notice over last four days, there is an island reversal- a bearish signal.
* Similar island reversal happened in July but at that time, it was bullish and it shows a nice upward move in prices over subsequent weeks.
* Also the volume yesterday (Sep 96, 2011) the day when GLD hit the highest price is considerabley lower then the volume we saw during the sell off few days ago. The upward movement has lower volume than the downdays and this shows a potential drying out of demand/ or acclerated profit taking.
* Not complete yet, but this can be a double top in GLD/Gold around 184-185 level.
Please keep a stoploss at yesterday's high prices.
* Similar island reversal happened in July but at that time, it was bullish and it shows a nice upward move in prices over subsequent weeks.
* Also the volume yesterday (Sep 96, 2011) the day when GLD hit the highest price is considerabley lower then the volume we saw during the sell off few days ago. The upward movement has lower volume than the downdays and this shows a potential drying out of demand/ or acclerated profit taking.
* Not complete yet, but this can be a double top in GLD/Gold around 184-185 level.
Please keep a stoploss at yesterday's high prices.
What a perfect timing/luck!
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