My previous post focused just on the Momentum dimension for GLD. This post explores both the Momentum and Price dimensions.
GLD from its 12/17/15 bottom could be forming a complex Elliott wave pattern. The 7/6/16 top - labeled (A) could be the first Zigzag of a developing Double Zigzag rally.
The developing wave (B) or (X) could be taking the form of an Elliott wave - Horizontal Triangle. If so the bottom of Minor wave "C" could be in place or will be soon.
Normally within the five sub waves of a Horizontal Triangle there are Fibonacci relationships within adjacent waves. In this case Minor wave "C" is .618 of Minor wave "A". Also note that GLD is now approaching chart support at the March and July 2017 bottoms. The recent daily RSI bullish divergence hints that a bottom may already be in place.
If GLD is at or near a bottom the subsequent rally could continue for several months. Now is the time to go long GLD.
POINT and FIGURE Chart Analysis
shows GLD experienced a BEARISH "Double Bottom Breakdown" on 7/13/18, with a downside break of 118.00
Daily RSI on GLD IS showing a Bullish Divergence, and 7/19 Bottom at the OPEN just above 115, on double average daily volume,
suggests an important short term low may be in place, and a bounce back towards 118 price level could be expected.
However, there is Substantial Downside Risk in Gold Futures at these levels,
based on a study of the longer term monthly price chart of Gold.
Current Point and Figure Analysis shows a Decline is possible in GLD down to 108.00
so placing a market STOP below approximately 115.00 on any considered long trade is ESSENTIAL !
Hi
There's a big diiference in risk between trading Gold futures and shares of GLD.
The following is based strickly on trading GLD.
You can start building long positions at the open of trading on 7/23/18.
Place stops just below GLD 112.50.
You should NEVER add to a losing position. Add to the initial position at approriate higher levels.
Mark
bdadon
⋅
Hi Mark, from what price would you start to build long trades untill. Curious what price level would invalidate it?
shows GLD experienced a BEARISH "Double Bottom Breakdown" on 7/13/18, with a downside break of 118.00
Daily RSI on GLD IS showing a Bullish Divergence, and 7/19 Bottom at the OPEN just above 115, on double average daily volume,
suggests an important short term low may be in place, and a bounce back towards 118 price level could be expected.
However, there is Substantial Downside Risk in Gold Futures at these levels,
based on a study of the longer term monthly price chart of Gold.
Current Point and Figure Analysis shows a Decline is possible in GLD down to 108.00
so placing a market STOP below approximately 115.00 on any considered long trade is ESSENTIAL !
THE_UNWIND