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Only A Matter Of Time Before GLD, Silver See Massive Move Higher - Technical Trader

Only A Matter Of Time Before GLD, Silver See Massive Move Higher - Technical Trader

 

Neils Christensen  

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(Kitco News) - With strong momentum in gold, it could only be a matter of time before the market sees a new multi-year high, according to one technical analyst.

“I’m not ready to say that the market is going to break out just yet. I think we could still see one more pullback. I think we are getting close to a break but we just aren’t there yet,” Avi Gilburt, founder of Elliotwavetrader.net, said in a telephone interview with Kitco News Wednesday.

Looking at the world’s biggest gold-backed exchange-traded fund SPDR Gold Shares (NYSE: GLD), he said he remains optimistic that a “massive” rally could be only months away.

 “Overall I have taken a much bigger perspective in GLD. As long as we hold $116, in pullbacks in the next week or two then I am expecting to see a massive rally,” he said. “From a sentiment wave structure, as long as we hold above support we have the set up for a very, very strong rally.”

The key level of resistance watch in the short-term is last week’s seven-month high at $123.31, Gilburt said. He added that a break of that level would lead to a test of last year’s highs and create the setup for a drive to his ultimate target at $138 to $145. GLD hasn’t seen a $138 print since May 2013.

 “From a trader’s perspective, once we take out last week’s high, this market is going to run…Once we get that breakout, I don’t think it will take very long to get to $145. You are going to see a lot of market chasing,” he said.

Looking at silver, which last traded at $17.16 an ounce, Gilburt said that if the metal can break above $17.85 an ounce, he thinks it is only a matter of time before prices hit $20.

“In the near-term, I see potential for another rollover before prices breakout the market goes parabolic,” he said.

By Neils Christensen



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