An Update on Gold (GLD)
My last post on Gold was nearly a month ago on April 12th, the day it broke its major support line and was followed by a further collapse the next day of -8.9%.
I’m still holding my short position since then, though I have covered approximately 80% of my position already, including some more today at support.
As of now I think it can go either direction, BUT the path of least resistance is lower (my general rule is to bet the trend and not against it UNTIL price confirms). So for now while I am still short I’m not adding to my position. I will wait for the stock to pick a direction.
I won’t even consider getting long until GLD breaks above 154…so for me there’s a long way. I’ll cover my short though around 144. So inbetween ~144 and 154 is no man’s land for me and I’ll just be watching.
If it breaks down below 139.50 area and CLOSES below there, I’ll add to my short.
Here’s a look at the weekly chart, which shows price holding onto the 200-week SMA.