Trading volume and gold

Strong volume flags a top or a bottom (click on the chart to enlarge it).

The unusually strong volume in December, as I noticed when it happened, suggested an important top was in the making with a long period of consolidation.

Strong volume in November and February signalled a bottom. Volume seems to have picked up again following the rally of the past few weeks. Is it signalling the beginning of another period of consolidation? Furthermore, $114 looks like a resistance level for GLD.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest

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