September 6, 2016

Stock Alert and Chart Analysis: GLD


  In these stock alert and chart analysis posts, I want to highlight a security that is on fire for some reason. Either the security's chart looks amazing and/or social media is going nuts about it.

  If you need a technical analysis refresher click here, and if you want to learn how I trade breakouts click here.

  Okay, let's get to work! (click here for the last GLD alert and technical analysis)

Stock: GLD, SPDR Gold Shares.

Long-term Weekly Chart Technical Analysis:

GLD is attempting to breakout above the descending triangle pattern, which is bullish. However, GLD still has 3 more days of price action to close out this week's candle and GLD is at resistance now. That means sellers have better odds than buyers, which is obviously bearish. So while this action may be a bullish pop to resistance, I'm cautiously bullish until I can verify the quality of this breakout by Friday.

Long-term Gameplan:

Sit tight and see how this candle closes on Friday. Short biased for now because GLD is at resistance, but further price action could verify a strong breakout by Friday.

Short-term Daily Chart Technical Analysis:

GLD is breaking out fairly strongly above the descending trendline. How GLD closes today will determine the efficacy of this nice breakout. Best case for the bulls is a close near the highs around $129+. Otherwise, the best case for the bears would be if GLD sells off into the close and turns today's candle into one with a big wick on top.

Short-term Gameplan:

GLD is in a bullish breakout mode but the close of today's candle is essential for continuation. One could buy a very bullish close today or wait for a breakout pullback (BOPB) to join the new potential trend. A BOPB entry would be around $125-126. Bears could short a bearish close today with hopes of a failed breakout and trapped early longs. Remember, from failed moves come fast moves.

What are your thoughts? Let's discuss it in the comments below. Remember, "Two heads are better than one!"


No comments:

Post a Comment