Well, the RSI divergence from my last chart crashed and burned, however, it has revealed an anomaly I had to share.
GLD has just moved the exact same distance as it did in November and December 2016. On the Weekly chart, this is also the last time RSI was this oversold. Also, while not exact, there was a similar wave structure preceding the move in 2016 to what GLD has done over the course of 2018.
In 2016, GLD fibonacci lines went from 124.45 to 107.18 for a 17.27 move In 2018, GLD fibonacci lines went from 128.39 to 111.12 for a 17.27 move
What's Next?
Back in 2016, GLD hung around the bottom for a week and then retraced 50% of the move in the three weeks after that.
Applying that to 2018, GLD would retrace back up 50% to 119.75 in about a month.
Will history repeat? It will be interesting to find out...
Consider opening a position on GLD call options for end of September expiration. You can set a tight stop, as this particular idea will either repeat, or it won't.
Hope we see a repeat and hope it serves you well.
Travis JMJ - UIOGD
Trade active
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More than 7 months later...this chart is STILL tracking close to 2017.