Is SPDR Gold Setting up for a Break Out?

gld New York, November 30th (TradersHuddle.com) - Shares of SPDR Gold Trust (NYSE:GLD) closed the trading session at $167.18 with its price action in a very tight range, given that calculated support is set at $164.60 and the calculated resistance is set at $169.00.

SPDR Gold Trust (NYSE:GLD) is an investment trust. The investment objective of the Trust is for the Shares to reflect the performance of the price of gold bullion. The Trust holds gold, and issues SPDR Gold Shares in Baskets, in exchange for deposits of gold and distributes gold in connection with redemptions of Baskets. The sponsor of the Trust is World Gold Trust Services, LLC. BNY Mellon Asset Servicing, a division of The Bank of New York Mellon is the trustee of the Trust. HSBC Bank USA, N.A. serves as the custodian of the its gold.

SPDR Gold's stock price action indicates that both sellers and buyers are materializing very close to each other. This signals an area where momentum is building, since the stock can resolve by breaking out of the developing tight range.

Traders wanting to establish a position should pay close attention to SPDR Gold's price action, as any movement outside its predefined range of $164.60 and $169.00 could grasp the attention of momentum buyers that look for a big movement in the price of the stock. Traders need to be aware that tight range resolution works both ways, hence, a move below support could spark above the average selling. A tiered approach could be the best way to start a position; enter into it while the stock is in the tight range, and then add to this position as it breaks and closes above resistance.



Related Articles

    Related Partner Headlines

      JIM CRAMER wants to work for YOU. JIM does the research -- YOU get email alerts each time he trades. JIM provides access to his actual portfolio -- YOU can use it to guide your portfolio strategy. Try Jim's Action Alerts PLUS for FREE!

      TradersHuddle Search

      Stock Search:


      Site Search:

      Loading

      Recent Trading Ideas

      Latest Partner Headlines

      Stock Market

      Loading
      Chart
      o Dow Jones 17,712.66 ▲34.43 (0.19%)
      o S&P 500 2,061.02 ▲4.87 (0.24%)
      o NASDAQ 4,891.22 ▲27.86 (0.57%)
      INDEXDJX:.DJI

      Dow Jones

      Company ID [INDEXDJX:.DJI] Last trade:17,712.66 Trade time:4:33PM EDT Value change:▲34.43 (0.19%)
      INDEXSP:.INX

      S&P 500

      Company ID [INDEXSP:.INX] Last trade:2,061.02 Trade time:4:33PM EDT Value change:▲4.87 (0.24%)
      INDEXNASDAQ:.IXIC

      NASDAQ

      Company ID [INDEXNASDAQ:.IXIC] Last trade:4,891.22 Trade time:5:16PM EDT Value change:▲27.86 (0.57%)
      Copyright © 2013 TradersHuddle.com. All Rights Reserved.