Thursday, September 22, 2011

I like what I see in GLD so far

There's been a recent range around $172-$178 and as you can see, every time it dips to the bottom of the range, it was accumulated and what is the last thing we often see before the upside resolution of a situation like this? A head fake and look at the 3C depth chart on today's move down.

 GLD 1 min

 GLD 2 min leading positive

 GLD 5 min, leading positive

 GLD 15 min leading positive

GLD 30 min, leading positive!!!

 DGP 1 min

 DGP 5 min

DGP 15 min

Even the 60 min is in a positive divergence!

I'm thinking a partial position here is worthwhile, you can always add if it drops a bit further. Just make sure you have your risk management set up for a full position before you enter even a partial position.

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