The SPDR Gold Trust (ETF) (NYSE:GLD) finished the week sharply higher gaining $2.17 by the close on Friday. Obviously when there is fear in the air many traders and investors will run to gold for safety. Last week the global markets faced more problems out of Europe as Greece, Portugal, and Spain are all on the brink of bankruptcy. Week after week traders and investors hear discussions regarding a bailout plan in the European Union that seems to never happen. As long as central banks around the world continue to print money in order to bailout countries gold will be in demand. Last week we stated that as long as gold remains above our black descending trendline it would be bullish and that still remains the case – we nailed the gold trade last week for nice gains, among others. The weekly resistance levels for the GLD are $117.00 and $121.00. The weekly support levels for the GLD are $113,00 and $110.00.
The United States Oil Fund LP (ETF) (NYSE:USO) has continued to rise this past week gaining 0.38 cents. The oil tracking ETF remains at the high range of a long sideways base that it has been in since October 2009. As long as the USO remains above the weekly 20 and 50 moving averages it must be given a slight upside bias. A close above the $42.00 level on a weekly chart could signal further upside in the commodity. The weekly resistance levels for the USO are $43.00, and $46.00. The weekly support levels for the USO are $39.00 and $37.00. Also it is prudent to keep the Exxon Mobil Corporation (NYSE:XOM) chart on your radar as it is a market mover.
The U.S. Dollar Index chart (PowerShares DB US Dollar Index Bullish (NYSE:UUP) closed higher again by 0.54 cents for the week at a new weekly closing high for the year. While this is very impressive the dollar failed to close above the $82.00 level. On many trading days it will trade above $82.00, however, it often sells off sharply to close below that important resistance level. As long as the U.S. Dollar Index remains above the $79.00 level the weekly bias is to the upside. The weekly resistance levels are $82.00, $83.00, and $84.00. The weekly support levels for the dollar are $80.00, $79.00, and $78.50. Knowing your key levels is critical to your success as a trader or investor – knowing how to use these levels properly will enable you to earn big profits out of the current market environment.