SPDR Gold Shares (GLD) — This Exchange-Traded Fund (ETF) seeks to mirror the price of gold bullion.
Following a rise from less than $40 to better than $110, GLD spent most of 2008 in a downtrend that reached $66 in early October. Since then, it has tracked the price of bullion and rose to just below $100 in February.
But along the way, it flashed one of the most respected bullish signals, the “gold cross,” which usually precedes a major trend higher.
Following its run to $100, GLD has pulled back to support at the 50-day moving average where it issued a positive signal from the stochastic. Shares purchased now could reward the buyer with a 30% move to $125.
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