Thursday, October 7, 2010

Gold, GLD- Are the golden days over for Gold today? Pro

Gold, GLD- Are the golden days over for Gold today? Probably yes.

The Gold ETF- GLD- is showing a strong trend reversal today. It is a text book (Profit From Prices) style U-TURN signal today. This signal occurs after a sustained bull run. Today volume is also very high.
If you are curious to learn my favorite Trend Reversal signal U TURN (SELL) signal, please click here.

Once can go short with stoploss at today's high prices. Target price is around 108 (until the stoploss is triggered)

Update: October 19, 2010.
As per Profit From Prices, when a chart is in a strong run, the first strong Trend Reversal signal is sometimes not sufficient but if another strong trend reversal signal happens within few days, it should be taken as a good confirmation for trend reversal.
The same has happned in GLD today. It opened with a downward Gap. (Wish yesterday, GLD had made a new High, I would have FREE FALL (Sell) signal)). Today's price movement is strong and if volume is also abnormally high, this should add confidence for trading gold/GLD short.

 Important: However good somethings appears, one should always protect trading positions with Stoploss.

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