Gold and Airlines: attractive ETFs for next weeks

Gold is very attractive again.

Due to its fundamentals, Gold is a great option for the next weeks, given that its inverse counterpart, the dollar, may continue to weaken due to two certain factors: the approval, increasingly close, of the US stimulus bill and the lower trend in inflation. Its risk is still there and gold can take advantage of that situation until the end of the year.

Technically GLD, the gold ETF, presents a very attractive chart, the kind that every trader wants. In the 4-hour price, the price is located in a powerful key zone: on the one hand, a 2-month purple downtrend line with up to 4 touches. Also, its crucial SMA200 average, in light-blue hit on Thursday. And last but not least, its green Fibonacci retracement of 23.6% of its rise since March. Its black EMA50 confirms a bullish bias. Overcoming this zone will be decisive for next bullish behavior, with resistance at the psychological level 2000 of its future /GC. So, as usual, check price action before a trade decision.

Still in gold analysis, an ETF that is very attractive is the mining, GDX, where combines the strength of the commodity with how well gold mining companies are doing, many of them in the now bullish SP500, making this ETF more volatile, and so interesting than the previous one. It had a strong rise on Friday that made it reach its SMA200 average of the 4-hour chart, shown below, having now a clear path to the upper line of its 2-month bearish channel, at $42.30, if its price action helps.

Keep an eye on US Airlines Stocks

According to a recent Trump tweet (incredibly, but a good way to trade), a considerable portion of the forthcoming new stimulus bill includes more aid for the airline industry. One of the sectors that suffered the most from the pandemic was undoubtedly airlines. The ETF that follows the large airlines, JETS (now $18.07), reached levels of decline form $32 to $12 and is one of the sectors with still a large road to return to pre-COVID levels.

This news was reflected in the price that rose strongly this week and should continue to do so in the following sessions. It even surpassed the critical SMA200 average with authority, heading for the stiff resistance of its 38.2% green Fibonacci retracement of its big drop in 2020. The rising wedge formed usually is bearish, but finally, price action decides it. On my radar.

In the next posts I will briefly develop my vision of the other ETFs that make up my Q4 long portfolio and my ideas about their behavior until the end of the year.