Pullbacks in Gold look buyable. $GLD $GDX – August 27, 2024
This is Scott McGregor at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I want to take a look at gold via the GLD SPDR ( NYSEARCA: GLD ).
I don’t know if you can tell by my Plan B, Bitcoin hat, but I am a Bitcoiner. That said, when I started trading I focused mainly on commodities and definitely have been following gold for a while. Gold ( NYSEARCA: GLD ) has always had a special place in my heart, and we can see from this chart that it has been a great trade all year long.
One thing that I have been telling my friends over at StockMarketMentor.com is, that with Gold ( NYSEARCA: GLD ) it’s typically not something you want to buy when it’s extended above the moving averages. It’s something you want to buy when it’s in and around the key moving averages.
You can see from some of my technical analysis lines here, that I’ve been looking for these pinching patterns and consolidation zones back to the key moving averages because those have been the best buying opportunities.
Now with the Federal Reserve more than likely to cut interest rates Gold ( NYSEARCA: GLD ) has been holding up well even when the stock market was really volatile at the beginning of August, Gold ( NYSEARCA: GLD ) didn’t even make it down to its 50-day moving average. It held above that 50-day moving average, showing a definite sign of strength.
I think that pullbacks in Gold ( NYSEARCA: GLD ) are buyable and we actually got one here today with a pullback to that daily 8 exponential period moving average, that’s the orange line on the chart here. We can see this really nice sideways base of consolidation.
So because Gold ( NYSEARCA: GLD ) isn’t really extended above these moving averages, I still think that this is definitely something that you could buy on a pullback to these key moving averages, as long as the daily trend stays intact above the 50-day, and as long as the weekly trend stays intact.
So keep an eye on Gold ( NYSEARCA: GLD ), whether it’s via GLD ( NYSEARCA: GLD ) or something like GDX ( NYSEARCA: GDX ), or even some of the individual miners like Eldorado Gold ( NYSE: EGO ) or Barrick Gold ( NYSE: GOLD ), that had a really nice move today off the 8-day exponential period moving average.
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