Recently shares of streetTRACKS Gold Trust (GLD), an ETF that moves in direct correlation with the price of gold, breached downtrend line resistance. This is a bullish indication from a technical perspective. There is, however, an optimal point of entry that I will be watching for.  I don't like entry at this level, but will be watching very closely for a retracement to downtrend line resistance turned support on light volume.

iShares Silver Trust (SLV) recently put in a move similar to that of GLD. SLV has also breached downtrend line resistance, indicating potential upside in the stocks price.  Keep your eyes open for a retracement to downtrend line resistance turned support on light volume. SLV will likely bounce off the new support level, but a few elements of confirmation must be present.

Andy Swan is co-founder and head trader for DaytradeTeam.com.  To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.