Technical Analysis of the Gold Chart-Does it look Overextended and Overbought?

GLD (the Index share tracking Gold bullion prices) looks overextended and overbought at these levels.

I often use Bollinger Bands to see how an Index is behaving Technically. Bollinger bands define a "channel" of healthy movement for the Stock-if the Stock price is at the channel boundary or outside it, it is a signal that the stock is either overbought or oversold.

Look at a Bollinger band enveloped chart of GLD here.

Gold should consolidate at current levels at best; or, more likely, a mini-selloff is in order.
Probably healthy for the long-run bull.

On another note, James Turk came out with a price target of $850 for Gold before March! Gets lotsa attention, such predictions...that's why they make it. Same with some analyst who recently came out with a whopping $2000 target for GOOG, the stock of Google.

Remember that these newsletter guys and analysts make bold outrageous predictions to get more publicity. No one fires them for being wrong.

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Sanjay John G.