GLD 6 year chart analysis

2006-2008

2007-2010

Staring at the above two charts, gold's long term bullish trend took stairs up pattern, simply the facts:

• From June 2006 to March 2008, in about 18 months, GLD was up about 80% from 55 to 100
• From March 2008 to Nov 2008, in 8 months, GLD clawed back about 61.8% of its gain and went back to 70
• From Nov 2008 to June 2010, in about 18 months, GLD was up about 76% from 70 to 123

Now comes to the forecast, if history will repeat itself, GLD will retrace 61.8% of the previous 18 month gain to $90 around Feb 2011.

In addition to GLD, a couple of ETFs to consider:

• PowerShares DB Gold Double Long ETN (DGP) - short sale not allowed
• PowerShares DB Gold Short ETN (DGZ) - short sale not allowed
• PowerShares DB Gold Double Short ETN (DZZ) - short sale not allowed