SPDR Gold ETF Technicals Point To More Upside (GLD)

Christian Magoon: The SPDR Gold Trust (NYSEARCA:GLD), has been on a roll lately as the Federal Reserve, European Central Bank, China and even the Bank of Japan have announced new liquidity moves over the last few months. Here’s the GLD performance breakdown from the GoldETFs.biz GLD fund profile page.

SPDR gold trust, Spdr gold etf, GLD chart

GLD has turned positive after central bank liquidity moves.

GLD has seen a corresponding rise in the money flow targeted toward this fund which owns bars of gold stored in a vault in London. Flows are now at one year highs even though GLD is still below its one year high from a price perspective. Here’s the one year money flow chart for the SPDR Gold Trust from the NASDAQ interactive chart center.

gld flow, gld volume

GLD money flows are at one year highs.

Taking a look at the GLD 150 day simple moving year to date shows the fund significantly above this technical indicator. However this spike isn’t unusual for the SPDR Gold Trust as it has seen this dynamic twice over the last year. Here’s the one year NASDAQ interactive GLD chart displaying the performance of the fund as well as the 150 day simple moving average trendline. GET A FREE TREND ANALYSIS FOR ANY STOCK HERE!

gld technical chart, spdr gold trust technicals

GLD has seen spikes above its 150 day moving average several times over the last year.

Taking a step back and reviewing the two year GLD chart shows that the fund has spent more time above its 150 day moving average than below. On top of that, the magnitude of its current level above the average is actually well below spikes in the past including GLD’s all time high in August of 2011. Here’s the two year GLD chart with the 150 day moving average.

gold etf, GLD chart

GLD is still below two year historic ranges in price and in relation to its 150 SMA.

Overall, it appears GLD has solid momentum from a money flow stand point, is still within healthy ranges of its historic 150 day simple moving average and off its all time highs from a price perspective These are three data points that technically bode well for GLD to continue its liquidity inspired rally.

Written By Christian Magoon From Magoon Capital

Christian Magoon is Publisher of GoldETFs.biz and IndiaETFs.com. He is also CEO of Magoon Capital, a strategic consultant firm to asset managers. Christian Magoon is an ETF insider, having launched over 40 ETFs in the United States to date. A widely recognized thought leader on finance and market issues, Christian regularly contributes to many financial media outlets. Prior to forming Magoon Capital in 2010, Christian was President of Claymore Securities (now Guggenheim Investments), where he built one of the fastest growing and most innovative ETF businesses in the country, gathering more than $3 billion in AUM in three years. He launched more than 40 ETFs, introducing many “firsts” to the U.S. market, including the first Frontier Markets, Sector Rotation, Solar Energy, Timber, BRIC and suite of China focused ETFs. Christian consistently provides his industry insights and knowledge as a commentator in the U.S. media speaking publicly on macro investment issues and ETF related topics. Follow him on Twitter @ChristianMagoon. In 2008, he was named by Institutional Investor News as one of the five people to watch in the U.S. ETF marketplace. In 2011, Financial Planning magazine dubbed Christian an “ETF Pioneer.”

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