GLD is precariously placed at its 50-day SMA. There was a massive correction of 4% with very large volumes on 12/4.
GLD really has two support levels: $100 (+-2%) and then $95 (+-2%).
In the next week, if retracement continues, it will definitely mark the beginning of mean reversion that can go all the way upto $95.
Any breach beyond $95, will designate beginning of bear market for GLD.
Strategy:
#1 - Short term downside is likely based on high-volume
#2 - Hold GLD positions but not add to it
#3 - $95 on GLD will mark a pitched battle between bulls and bear -- participate in it.
#4 - If you are a GLD bull, double down at $95 with a very strict stop-loss of 2-3%
No comments:
Post a Comment