- Analytical Commentary -

March 25, 2010 (FinancialWire) (By Frank Kollar) — Shares of Streettracks Gold (NYSE: GLD) have not acted well since reaching all time highs back in early December 2009. On Wednesday March 24, after several months of volatile but mostly sideways trading, Streettracks Gold gapped down at the open and closed with a substantial loss.

What next for this extremely volatile and hugely popular gold ETF?

Gold has twice reversed from short term resistance levels since December 2009. Streettracks Gold reversed from $112.42 on January 12, the 50% retracement for the December decline.

On March 3, Streettracks Gold again reached $112.42 and reversed. On that date it was the 50% retracement for the entire December to February decline in gold shares.

Though gold can make sudden moves that surprise everyone, Streettracks Gold appears headed for much lower lows.

There is strong support at $104.20. A close below this support would lead to a test of $100.

Hopefully one of these levels will hold, because if the $100 level is broken, there is very little support for this ETF and considerably lower lows would likely be reached.

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 and 2008 bear markets, 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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