- Technical Commentary -

December 17, 2009 (FinancialWire) (By Frank Kollar) — On December 3 we wrote; “Streettracks Gold (NYSE: GLD) closed at $119.10 on Wednesday, December 2, only a fraction below the ($119.98) resistance level and the target for the current rally. Streettracks Gold is now rising on momentum alone. This is dangerous territory.”

Since that date Streettracks Gold has sold off and lost some 10% at its correction lows. On Wednesday December 16, Streettracks Gold rallied and closed at $111.59.

Is the correction over?

The declines closed below the 50% retracement level for the steep October 28 to December 3 rally and almost reached the 61.8% retracement level. This is right where we would be looking for strong support and a reversal and renewal of the advance.

Higher highs are likely with initial short term resistance at $114.13 and then $115.40. If Streettracks Gold clears these levels it should make a run for its prior highs.

On the downside, should Streettracks Gold close below its correction lows at $108.72; we could see a test of the October lows at $100.65.

The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in Streettracks Gold.

Frank Kollar has been timing the financial markets since 1982, with online service since 1996. He is a dedicated trend timer and his strategies exited the markets before the crash in 1987 as well as the bear market in 2000 through 2002. During the 2000-2002 bear market, his bearish positions resulted in gains exceeding 100 percent, all achieved by trading trends.

Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.

Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.

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