If Gold can reclaim this trendline….

Last Friday I was very bearish on the price action of GLD based on the close well below the 3 month trendline. Today GLD showed some fight and close near the highs of the day at just under $160.

If it can reclaim this daily trendline then that would indicate a false breakdown which means that we should expect a large move in the opposite direction. In short, this could be the buying opportunity that gold bugs have been looking for.

To add to this, the VIX ended at the highs of the day as well despite the S&P pushing higher in the last half hour as well.

As they say, the more that technical analysis grows, the more common that false breakouts/breakdowns become. Keep an eye on GLD and VIX tomorrow. If the market runs higher again into Wednesday when the FOMC statement is due and both gold and the VIX are higher still, it will be a red flag to say the least.

About Aaron Basile
Day Trading and Swing Trading Ideas, Certified Personal Trainer, Power Bodybuilding, Avid Sports Fan (NBA, NFL)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: