GLD Update

Last Friday we drew a new trendline on the GLD chart and expected a highly directional move from GLD.

From the last update:

"It seems to me GLD may be entering a tight consolidation and perhaps nearing a directional breakout."


" I'm more inclined to trade GLD short term from the long side, but a you can see above, the triangle is likely to create a tighter trading range over the coming days."


This is what we were looking at before... GLD is VERY choppy right now, although I'm still biased toward short term trades on the long side, I believe GLD is closer right now to staying within this recent range and probably doing some constructive work. I don't want to chase it here and only want to trade it on very high probability signals.


Here are the current charts or my view of GLD.

 This was the bear flag on a daily chart we were looking at in GLD.

 Recently we added this trend line on a 60 min chart, you can see how it created a tight trading range that GLD was likely to breakout of in a directional move. The area in yellow was discredited in Friday's post as a head fake move.

 The short term charts look too choppy and inconsistent for me, the 15 min chart shows a good area of accumulation before the breakout, but also shows the breakout as not being confirmed, thus the reason I lean toward GLD coming back in to this range soon.

The 60 min chart went from very strong accumulation very quick to a large move up that was sold in to and a negative divergence which we successfully traded GLD from the short side about 4 times, then it started to shape up in a positive divergence and we pulled out 1 long trade in GLD, however like the 60 min, it is now showing the initial signs that this move up is not confirmed, so I'd be patient and lets see if GLD does indeed build a bigger base that will support a larger trend.