GLD was in a down trend from March 22 until early November 22
Since GLD broke that trend it has turn former resistance into support with confirmation
on Jan 13 GLD broke through the next reistance zone around 175 and is now peaking at almost 180$
even though on Jan 17 and 18 GLD traded down and then came back strong on Jan 19 it still needs to come back and...
Almost there! GLD should slam on the brakes and wrap up the blue wave (i). After completion, we expect the course to dip into the blue target zone between $162.26 and $155.58 to fulfill the corrective low of the blue wave (ii). Once achieved, the GLD is good to go and should rise back North.
After the hard work of finishing wave iv in magenta, we expect GLD to play a bit in the yellow sandbox between $150.72 and $140.40, all the while completing wave (4) in yellow. Then, it should get down to business again – or rather get up to business, as we expect GLD to climb northwards, crossing the resistance at $171.23. There is a 35% chance, though, that GLD...
The GLD price has reached its ideal mark at around $171.43. Now, we expect the price to drop all the way down to levels around $162.15. Ending the correction there, the GLD can then look forward to gain upward momentum.
Enjoy your weekend!
In the past, Bitcoin has made great gains over gold. Measure in the price of gold, Bitcoin did a 10x in 2013 and a 14x in 2017. Will history repeat itself in 2021? Will BTC do another 10x to 14x on gold?
Hard to say to short Gold given the circumstances, but a potential put option may be in play in the short term. Have to see if it keeps getting rejected or not.
Position:
- Long dated call options
- Jan 15th 2021 expiry
- $137 Strike
- 0.71 Delta (ITM)
- Cost = $12.10/ contract
- Buy 1x contract
Profit Target/ Exit:
- $150 initial profit target
- Two closes below $136 is exit signal (this would be around a 50-60% stop)
Rationale:
- GLD has broken out of the descending channel (period of consolidation)
-...
Gold finally showing direction, but will it last...
So last week I suggested gold was treading water looking for direction. Well a mighty push up of $22 on Friday seems to have confirmed it has found a positive direction, but will it continue?
On a technical basis there are issues as can be seen from the notes on the chart above. On a fundamental basis there...
