Gold $GLD found buyers at the 38.2% retracement of the April low to the Aug high, that retracement is also the VWAP anchored off the Apr low.
That is the good news for gold bulls.
The bad news is, there's a lot of price memory ahead that will likely take time to work thru pic.twitter.com/FZH7FPT33D
— Brian Shannon, CMT (@alphatrends) December 5, 2019
Today’s Chart of the Day was shared on Twitter by Brian Shannon (@alphatrends). It’s a daily candlestick chart of the popular Gold ETF, $GLD. Brian points out that $GLD found buyers at a confluence of two key support levels; the 38.2% Fibonacci retracement of the April-August rally and the VWAP anchored to the April low. This VWAP represents the average price buyers and sellers transacted at since the April low. The ETF is up about 2% from this support level. However, Brian warns the bulls that there’s a decent amount of overhead supply around $141 that could prove to be a speed bump for $GLD. Bulls and bears could both end up disappointed in the short term if price continues to move sideways between these levels of support and resistance.