Stock Market - Gold is a Buy Now?
May 04, 2013 - The GLD ETF Closed at 142.09 on NYSE ARCA. It is rougly equivalient to 1420.09 US$ per one ounce of gold. It reached a high point of 174.07 on October 04, 2012. It is down by 18.41 % from the recent peak today. It did also entered into bear market territory 130.51 on April 15, 2013. This is 25% down from the recent peak.
GLD ETF did break its 50 days EMA of 147.620 and 200 days EMA of 155.940. Gold touched its death cross during Feb 2013 and it is currently down by 8.93% from its 200 days EMA.
What happens next?
The big traders would like to see whether Gold can go below its bear market territory that is GLD ETF trading below 130.51 (25% down from the recent peak). This marks down around 16% from its 200 days EMA. Gold Prices started recovering once it reached 25% down by the recent peak.
Yes, It is definitely a good time to buy Gold. If you have any upcoming commitmentsthat require to buy gold, you may very well buy it.
But is it the best time to buy gold? No. It has to crash little further with panic. Since there is no panic seen in the gold market. People are getting attracted to lower gold prices. If you are a long term investor, then you can certainly wait GLD ETF touches around US$ 115.00 to US$ 120.00.
But we can not expect the gold price to go down directly to this level. Before that we have to do lot of retesting of technical levels.
As a trade, you can buy gold ETF GLD around US$ 143.00 and sell at a point around US$ 155.00 with a stop loss of US$ 139.00