MPTrader Mid-Day Minute - Gold Streets ETF Consolidates Above Support

By: Mike_Paulenoff

For the past four sessions, and since it thrust above its declining 50-day moving average, the streetTRACKS Gold Shares (NYSE: GLD) has consolidated above the 50 DMA in what appears to be a bull flag formation that should resolve itself in a thrust towards the May '06-July '07 resistance line, now at 67.80. At this juncture, only a sustained break of the 50 DMA will begin to compromise the developing bullish scenario.

Comparing the GLD to the U.S. Oil Trust ETF (AMEX: USO), while the USO certainly has outperformed the GLD on the upside during the past 6 weeks, the USO also outperformed on the downside from last year's July peak into Jan. '07. Put another way, The GLD has been much less volatile, and thus exhibited considerable relative strength vis-a-vis the USO.

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By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

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