GLD on the 4H chart has downtrended for 2 months. However, the supertrend is that of a
gradual trend up as shown by the green ascending line. The two indicators point to a reversal.
The MACD shows a cross of the K / D lines under a positive histogram and impending cross
over the horizontal zero line. The Chris Moody with dual RSI plots shows the RSI on the
weekly time frame in black to be trending down from 70 and settling at 50. The daily time
frame in blue bottomed at 29 and is now 44. This is a bullish divergence of the RSI as compared
with the price trend. Overall I expect a reversal with a trend up targeting $192 which is the
approximate pivot high of early May also confluent with two standard deviations above
the mean VWAP anchored to 2/1/23. The stop loss is to be set below the ascending support
at $176. Accordingly, a potential loss of $2 until the stop loss is raised to break-even
once price gets to $182.00. After that, the trade will be both risk and stress free.
gradual trend up as shown by the green ascending line. The two indicators point to a reversal.
The MACD shows a cross of the K / D lines under a positive histogram and impending cross
over the horizontal zero line. The Chris Moody with dual RSI plots shows the RSI on the
weekly time frame in black to be trending down from 70 and settling at 50. The daily time
frame in blue bottomed at 29 and is now 44. This is a bullish divergence of the RSI as compared
with the price trend. Overall I expect a reversal with a trend up targeting $192 which is the
approximate pivot high of early May also confluent with two standard deviations above
the mean VWAP anchored to 2/1/23. The stop loss is to be set below the ascending support
at $176. Accordingly, a potential loss of $2 until the stop loss is raised to break-even
once price gets to $182.00. After that, the trade will be both risk and stress free.
Trade active:
Added another 25 shares at $177.75 ( morning low).
Trade active:
Dollar value hitting what seems to be a near term bottom may confound the rise of GLD if both are trying to rise simultaneously. Time will tell.