GLD Gold's Attempt to Double Bottom Update

GLD Gold’s attempt to double bottom (Update)

February 27, 2014

As expected from my previous post, gold has become the flight to safety asset. With the S&P500 teetering with unchanged for the year, today finally the S&P500 closed at a (new all-time high) of 1854.36 (opening on the year at 1845.86) but with a current YTD performance of just +0.46%. As noted in the previous post a move above the small blue trend line beginning with the August 137.55 high was indeed the catalyst needed to push gold higher and begin to squeeze all the short sellers out of this ETF. Once price surpassed the small blue trend line initiating a long position on a break was how I played this to get long i.e. buy this ETF (Exchange Traded Fund). I entered the market at 121.73 buying 100 shares and we saw gold prices aggressively auction higher by 4.5% in 8 days of trading. At this point in the game gold prices are testing the (Early Confirmation) and attempting to cross the dark blue multimonth trend line going back to the October 4^th of 2012 high of 174.07 as mentioned in my previous post. This multimonth trend line discussed still remains as the (Early Confirmation) signal that the 114.68 gold lows are attempting to hold and that gold’s trend is apt to reverse with a price close above 137.55. At this point in the game we are seeing an immediate reaction/consolidation as anticipated at the multimonth (1^st Confirmation) trend line. Currently I’m up +5.32% on this position as the S&P500 is up a lousy +0.46%, so to protect my position (Profits) I’m going to trail up a stop limit order to protect myself if a correction try’s to occur. By doing so I eliminate 100% of my risk in result creating a risk free trade. As this this trade pans out over the next several weeks/months, I will continue to monitor the S&P500 and adjust my gold stop accordingly as I expect gold to push up, test and ultimately close above the 137.55 (2^nd Confirmation) high confirming that the 114.68 lows are in and my 160.00 measured move (target) is active.     

  

Filled Closed NUGT $41.94 + 6.94 or +19.83%

Filled all out of NUGGET $NUGT long from 35.00 sold at 41.94 for +6.94 or +19.83%. With a 2 day trade (move) like this and not taking it off would be pure greed. With a 3x ETF taking your profits off the table when you have them is wise. I'm still long the GLD (Gold ETF as a position trade). Here's the gold link Also Initial Entry on NUGT Chart.

Gold's Attempt to Double Bottom

With the recent market volatility (vix over 20) and selling pressure in the major indices, gold is subject to a decent move to the upside if the SP500 selling pressure persists as a flight to safety asset. A move above the small blue trend line beginning with the August 137.55 high, could be just the catalyst needed to move up and test the dark blue multimonth trend line going back to October 4 of 2012 with a 174.07 high. This trend line is major resistance so expecting a immediate reaction and few day consolidation after its initial test is possible. A move above this major trend line is the 1st confirmation that the dragon reversal bottoming pattern is underway. This will be were the 2nd round of stops will be as this ETF could trade up to the all-important 137.55 high. A close above 137.55 confirms that the double bottom is intact and creates a measured move target up to 160.00. One hurdle in the way to the 160.00 objective will be the 148.27 price which is the double bottom valley low that was confirmed on April 4 of 2013. This level should see a reaction on the initial test because it’s been naked ever since the 2 year double top was confirmed. All in all the flight to safety in this precious metal looks to be underway.

Gold Inverted H & S want 1770?

GLD Turn Anticipated In Gold

GLD Daily Chart

Gold Weekly Inverted Head & Shoulders Pattern

Gold $GC_F futures weekly chart has been testing its Key Reference Area (3) times since putting in 1923.70 highs from September of last year. In doing so, these (3) tests have created a large inverse head and shoulders bottoming pattern as the head was defended of may this year with a right shoulder low of 1526.70. After putting in a right shoulder low, this future made a move north to 1642.40 finding its 1st resistance. After finding the 1526.70 high/low saw a double bottom re-test in late June. Then a few months of consolidation this future was ready to breakout of its symmetrical triangle formation which targets 1758.10 which was a few points away from completing its short term upside move today. Note: smaller time-frames today are turning negative as the last 4 trading weeks look a little long in the tooth and vertical. Any pullback into the key 1642.40 area "high" I anticipate responsive buyers to be active (what was resistance now = support) , this also would be a healthy retracement needed to propel this future through the neckline and begin attacking its extremes highs of 1923.70 and then on the complete its ultimate objective of 2084.90

Gold / GC_F Futures Setting Up For Pullback ?

Gold Weekly Chart

Gold Weekly - New support forming at 1600.00...1520 level acted as support as 3rd test formed ba (consolidation ) into area http://www.kratrader.com/2011/08/gold-got-parabolic-swing-trade-short.html

Gold Downward Channel Forming

Gold Cup N Handle (Trying to Build Handle)

Gold got Parabolic, Swing Trade Short

Gold got to a parabolic state and this is how highs happen and people get trapped. The current low that formed today is the top of the channel that we have been riding and touching for close to 3 years (what was resistance = now support). We took out previous swing lows and completed all upside objectives. Are we ready to form the right shoulder? I think so 1826-1797 ish area I will have my head on a swivel anticipating a right shoulder to complete within those numbers, Targets will be the 1520 band of support that was left naked after the breakout. Which was previous area of acceptance. Only in this area will I consider taking any swing long positions. Also note the gap area, after we created that gap is when things got out of control. Good Trading Kratrader.

Reversion Back To The Mean Trade Gold

Watching Gold here Closely About to test pivot extreme #8. Great risk reward trade here. See Video here http://chart.ly/bp2jclg

Good Trading KraTrader