Technical indicators say it’s time to trade this gold ETF.
iShares Gold Trust (IAU)
From Gold & Silver Stock Report
On the gold ETF front, the iShares Gold Trust (IAU) recently confirmed a technical
breakout by closing above the pivotal $11.60 level and returning above its rising 15-day
moving average. This put me back on an immediate-term buy signal for IAU, where I
remain despite the dollar’s recent strength.
I suggest watching the $11.37 level (the Aug. 23 closing low) closely from here, as this is my recommended initial stop-loss (intraday basis) for this trading position. A violation of $11.37 would put me back on the sidelines for the immediate term. My continued expectation for IAU and the gold price is for a lateral trading range to be established in the coming weeks.
I would add by way of caveat that there is still a volatility risk in the gold market in the coming days until the U.S. dollar index closes decisively under its 15-day moving average.
Cliff Droke, Gold & Silver Stock Report, www.cliffdroke.com, October 31, 2018