a href=”http://ftalphaville.ft.com/blog/2009/01/29/51827/gold-is-the-new-money/”FTAlphaville/a has sourced an article in the a href=”http://www.ft.com/cms/s/0/efe1a910-ed98-11dd-bd60-0000779fd2ac.html?nclick_check=1″FT/a about a hedge funds denminating their investments in gold in place of dollars. br /br /Certainly there is no shortage of a href=”http://ftalphaville.ft.com/blog/2009/01/13/51069/gold-substandard/”interest/a in the commodity; will a deflationary recession kill gold, or inflationary money-printing have gold bugs counting their coin? br /br /span class=”fullpost”Using the SPDR Gold Shares (strongGLD/strong) as the example, the good news for gold bugs is the rally from October lows has cleared one level of declining resistance from July, but has yet to challenge a second dating back to March of last year. There is, however, room to maneuver up to the latter’s resistance currently lurking around $92 which so happens to coincide with the pivot high of September 29th 2008. br /br /a href=”http://1.bp.blogspot.com/_WWGUfU1tOjI/SYG8ifF4mmI/AAAAAAAAAuQ/ztZz6mzpIdY/s1600-h/GLDJan29.png”img style=”display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 320px; height: 178px;” src=”http://1.bp.blogspot.com/_WWGUfU1tOjI/SYG8ifF4mmI/AAAAAAAAAuQ/ztZz6mzpIdY/s320/GLDJan29.png” border=”0″ alt=”"id=”BLOGGER_PHOTO_ID_5296721937412168290″ //abr /There is probably the momentum to get it there, but beyond that it might struggle without first making it back to trend support first.br /br /The problem for gold bugs is that since August of last year gold has far outperformed its counterpart, silver, suggesting a potential arbitrage play.br /br /On December 11th 2008, iShare Silver Trust (strongSLV/strong) broke through its 50-day MA and managed a successful backtest on January 14th. On January 23rd it broke through $11.48 resistance on solid volume. br /br /a href=”http://3.bp.blogspot.com/_WWGUfU1tOjI/SYHAIaaCIXI/AAAAAAAAAuY/luSablIKchY/s1600-h/SLVJan28.png”img style=”display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 320px; height: 178px;” src=”http://3.bp.blogspot.com/_WWGUfU1tOjI/SYHAIaaCIXI/AAAAAAAAAuY/luSablIKchY/s320/SLVJan28.png” border=”0″ alt=”"id=”BLOGGER_PHOTO_ID_5296725887524413810″ //abr /Perhaps the Bugs have the wrong Beast?br /br /I have created a YourCall for strongSLV/strong for a push to the lower reaches of last September’s consolidation at $12.89. I’ll stick a stop below $11.48 support. Let’s see how it fares. Follow this call on our a href=”http://www.zignals.com/main/”stock charting/a service; use-of-service requires free registration. br /br /a href=”http://4.bp.blogspot.com/_WWGUfU1tOjI/SYHBpuT2yJI/AAAAAAAAAug/h2XxSZ9a8DM/s1600-h/SLVJan28B.png”img style=”display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 320px; height: 152px;” src=”http://4.bp.blogspot.com/_WWGUfU1tOjI/SYHBpuT2yJI/AAAAAAAAAug/h2XxSZ9a8DM/s320/SLVJan28B.png” border=”0″ alt=”"id=”BLOGGER_PHOTO_ID_5296727559314524306″ //a br /span style=”font-size:80%; color:#cccccc;”Dr. Declan Fallon, Senior Market Technician, a href=”http://www.zignals.com”Zignals.com/a the free stock alerts, market alerts, and stock charts website /span/span

Last 5 posts by Declan Fallon

• Trading Strategy Risk Management - November 23rd, 2009
• Creating a Trading Strategy in Zignals - November 10th, 2009
• FTSE 250 ETF : Breakdown of 20-day moving average - October 27th, 2009
• NASDAQ Breadth Top-Heavy - September 30th, 2009
• NASDAQ Sep 22nd 2008: 2,179 - Sep 22nd 2009: 2,146 - September 23rd, 2009