Gold (GLD) is 5% above its 2 year SMA.
Current price ~ $89
2 year SMA ~ $84
It is in a consolidation pattern for a while now with a bottom forming on the short term cycle. $84 is a very strong support level for Gold. Therefore, a good time to buy will be around $84-$85 with a strict stop loss near $82. For those who are worried that it may not go as low as $84, buying some now may not be a bad idea. However, the stop loss is not very close and you should be prepared to take some short term loss, if it goes down further.
Repeat trade if it goes up above $84. Instead, if it continues downslide, $70 forms another strong support levels to buy (for a rebound).
Important support levels: $84, $70, $60.
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