From a sentiment perspective, everyone is bearish GLD now that it's fallen so much over the last week. However, from the chart perspective, it looks like a great place to buy the dip.
If I turn on Bollinger bands, price is the furthest it's been outside of the bands to the downside from as far as I can see on the chart.
From an RSI standpoint, we're also still in extreme bullish areas on high timeframes. That makes me think that this is just a buy the dip scenario in a parabolic trend, and not the start of a larger selloff yet.
I think if we can hold these bottom support levels, the last leg higher will take us above $400. Likely to the first two resistance levels around the $420 area, but there's possibility that we can extend higher-- I've marked higher resistance levels off on the chart too. This should all play out before Nov 21st expiration.
Let's see how it plays out over the coming month or so.
If I turn on Bollinger bands, price is the furthest it's been outside of the bands to the downside from as far as I can see on the chart.
From an RSI standpoint, we're also still in extreme bullish areas on high timeframes. That makes me think that this is just a buy the dip scenario in a parabolic trend, and not the start of a larger selloff yet.
I think if we can hold these bottom support levels, the last leg higher will take us above $400. Likely to the first two resistance levels around the $420 area, but there's possibility that we can extend higher-- I've marked higher resistance levels off on the chart too. This should all play out before Nov 21st expiration.
Let's see how it plays out over the coming month or so.
Note
Bought calls at open.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.