GLD 10US$ (technical)

GLD 10US$: the share price chart looks broken, with the latest gap down likely on the back of rumors that a commodity hedge fund is in trouble and is unwinding positions. RSI and Stochastics are oversold, and RSI is at the lowest level in at least 2 yrs. At US$151.2, the counter is trading at the higher end of the historical support band (US$145 - US$151). There are at least 3 previous instances where share price dipped into this zone and subsequently rebounded. Aggressive traders, noting the current oversold conditions are due to short term capital supply-demand dynamics, may look for opportunities to buy within the zone, for a rebound tactical trade back to the US$160 medium term resistance. Cut loss if the counter breaks down below US$145, signalling a structural share price decline trend.