GLD Follow UP

Interestingly it was just yesterday that the Gold trade set up was posted, GLD / Gold Long Trade Set-Up , which is one of the reasons it was difficult to determine whether are not a fade of this morning's parabolic move was justified or not.

It has not been a matter of whether or not the gold charts look strong enough for a nice Long trade, it was and I believe still is, a question of timing and a high probability, low risk entry. I will leave the trade set up that is linked above as it is for now and just concentrate on this morning's move and resulting trade idea.

 The GLD 5 min chart is part of what what was so challenging in determining whether or not to fade this mornings move. This is how the GLD five minute chart looked yesterday with a leading positive divergence.

 This is how the exact same five minute chart looks today with this morning's parabolic move higher. Under normal circumstances this looks like confirmation of the move. However this leading divergence which is one of the reasons I like the GLD long trade and posted the set up yesterday, is really not a reaction to today's price action, it was already in place yesterday.

 The three minute chart is also one of the charts that played a role in the trade set up from yesterday. It has not confirmed the upside move this morning which is part of the reason I decided to go with a fade trade.

 The two minute GLD chart should have been able to easily confirm price action within the first 15 minutes of the market open, rather it is still negative in line with the trade set up from yesterday.

Remember, yesterday's post was not an actual trade but the set up we are looking for to enter the trade.

 Gold futures intraday also have not confirmed on this one minute 3C chart.

And the five minute chart is in line with yesterday's trade set up which is Gold already has strength, we are simply looking for a near-term pullback to enter at a better price point in lower risk with a better timing.