Key Prices to Watch on GLD and USO April 19

Apr 19, 2010: 10:27 AM CST

One thing stock market traders may have missed in the wake of the Google and Goldman Sachs sell-off Friday was that gold and crude oil prices also suffered similar declines as the stock market.

With that in mind, let’s take a quick updated look at the daily charts of GLD (Gold ETF) and USO (Crude Oil ETF) to see what levels are important for us to watch.

First, Gold GLD:

Quick sleuthing tells us that we need to be watching the $110.00 level as potential and key support, as that is the 50 day EMA but also the confluence of the rising ‘arc’ trendline as I’ve drawn.

A break under $110.00 could send us back to test lower support at $106.00.

However, the upper level to watch for a breakout remains the $114.00 per share level – the recent high and also prior price high from January.

It would be logical to expect a test of the highs at $120.00 perhaps if we do get a confirmed breakout above the price resistance at $114.00.

Finally, Crude Oil USO:

USO is not as ‘clean’ chart-wise as GLD, but we take what the charts give us.

Price broke above the $42.00 price level only to collapse back into the trading range, forming a potential bull trap – that’s not good for buyers.

However, the lower support level to watch on USO is $39.50, which is the 38.2% retracement as drawn but also the rising 50 day EMA (actually at $40.00).  It’s also the support of a short-term rising trendline (not drawn).

A move under $39.50 could see a retrace back to the next support confluence at the $38.00 level… and lower if price breaks under $38.00.

We see the similar negative volume divergence in USO as we do in the broader stock market ETFs (SPY, DIA, QQQQ, etc).

For detailed analysis and charting on the monthly, weekly, and daily frame, take a look at our premium Weekly Inter-market Report service.

Corey Rosenbloom, CMT
Afraid to

Follow Corey on Twitter:


5 Responses to “Key Prices to Watch on GLD and USO April 19”

  1. TheYenGuy Says:

    A yen carry trade reveral caused a speculative investment sell off at market open … Currency traders went short the commodity currencies today, that is the Canadian Dollar, FXC, and the Australian Dollar, FXA, the Rand, SZR, and the Ruble, XRU, causing an early morning downturn in the resource sectors Metal Manufacturing, XME, and Steel, SLX, and Canada, EWC, Australia, EWA, Russia, RSX, and India, INP, as well as oil Oil, USO.

    But then at 12:30PM, the traders reacted postivively to March's 1.4 rise in the Conference Board's index of leading economic indictors: the market exploded higher.

    The currency monetized (inflated) shares, Europe Emerging Market, GUR, Nasdaq 100, QTEC, Semiconductors, SMH, Russell 2000, IWM, Small Caps, RZV, Chinese Small Caps, HAO, Brazil Small Caps, BRF, Airlines, FAA, Retail, XRT, Housing, XHB, India, INP, fell lower.

    It was the Candain Dollar, Australian Dollar and the South African rand that monetized (inflated) oil over the last 90 day … … so it is not surprising that today oil fell more than gold.

    Certainly gold will fall lower in the short term but the P&F Pattern For GLD manifests as a double top breakout on April 7, 2010 with an objective of 129. So the investor is caught in a quandry; buy gold as it dips lower, or short sell stocks for now. My encouragement is to stay liquid and to buy gold as it dips lower; in any event, I certainly would not wait too long to be in physical possession of gold as I am expecting both a stock and bond market collapse causing a liquidity evaporation where one will not be able to obtain funds in mutual accounts, brokerage accounts or money market accounts.

    More charts and commentary in my article Yen Carry Trade Reversal Causes Speculative Investment Selloff

  2. sharetipsinfo3 Says:

    <a href=”” title=”Indian stock market
    recommendation”>Indian stock market recommendation is one of the fastest growing markets. Major stock exchanges like NSE and BSE are also growing in terms of volume, traded contracts and turnover on regular basis.

    Now the question is how to select best stock pic of the day for intraday trade and positional trade? In this regard sharetipsinfo comes into the play.

    At Sharetipsinfo we assure you high accuracy and our tips are based on technical analysis.

    Once you comfortable and gains confidence than no one can stop day traders and investors from earning profit from the stock market.

    Have confidence and trade without emotions and see how things changes for you in short while.

    For any query feel free to contact us

    <a href=””

  3. Nilesh Shukla Says:

    Your blog is quite nice and informative.
    As far as Stock Market is concerned. Trading in market requires both time and Knowledge. Without these two factors its impossible to trade .
    If you get recommendations from some specialist then also you must keep in mind its your money you should invest it wisely. Its always advisable to get recommendations from analyst but again before investing you should do your research also. Indian stock market is very high already now wait for dips before going long in Nifty or in some script.

    If you have any Query please feel free to contact us.
    Stock Market Tips

  4. Commodity Says:

    Seems like it’s a nice blog. So let us also add something useful in it. commodity trading in
    volatile market can be very fruitful also if we follow technical levels
    closely. It’s a common saying that stock market can change fortune in
    either way. But now the question is how to earn money from the Indian
    stock market.

    Traders are advised to strictly follow technical analyses and
    investors can follow fundamental analysis. Many analysts say it’s not
    wise to follow technical and fundamental analysis together. But we say
    what the problem is if one does so? As more knowledge will add up
    things will not have any negative impact.


  5. stock tips Says:

    commodity is an important part of share and stock market to get more and more profit we have to be very much aware with the new updates and new topics of the stock tips, commdity and many other things.