UGLD (3x long GLD) was entered just before the 2 p.m. F_O_M_C policy statement Wednesday and generally speaking since the Gold pullback and what it has done since including not only a downside ROC in price from down to a more lateral base-like formation and confirming divergences, I suspect this swing may be running in to some resistance and may be best taken off the table and looked at another day for a longer term trend entry (not sure if I'd need the leverage as I usually use that for shorter term trades , although there are exceptions).
8+% isn't a bad little gain for a day and a half or so of market exposure.
This longer term 60 min chart that was telling us a pullback of some magnitude was coming back in January...
Has since gone lateral with a positive divegrence.
I'm just not convinced that Gold can make a turn up to a primary trend without a little more lateral work on the base (widening out the foundation for a primary trend move).
As we are nearing some local resistance any way, this intraday volume looks a bit like churning to me so I'd rather be safe than sorry here.
There have been good divergences for going long and good confirmation right through yesterday, today is the first day that short term intraday (1 min) confirmation has thus far failed.
Even in to yesterday's close there was a positive divgerence suggesting higher prices this morning, but since, there's a small negative and taken with that volume, it may be a short term churning/selling event as gold broadly speaking, could use a pullback and a wider base (more work laterally).
I'll be updating gold more and more as well as
Dolf miners, GDX, NUGT and DUST.
For now though, I'm taking the gains off the table and waiting for a better looking forward looking set up.
As a longer term position and without the leverage, I'd probably have no problem holding gold here with the understanding that more stage 1 base building volatility is likely.
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