GLD (gold ETF) offers an objective, yet fairly aggressive entry here just above the 136.37ish support & will be added as an Active Long Swing Trade & Long-term Trade Idea. Daily chart below.
GLD daily March 16th
The current price targets for this trade are T1 at 142.70, T2 at 145.38, and T3 at 156.10 with the potential for additional targets to be added depending on how the charts develop going forward. As I’ve recently laid out both the technical (charts) and the fundamental case for a continuation of the bull market in gold that started back in December 2015, this trade will be added as both an Active Swing Trade as well as a Long-term Trade Idea (i.e.- trend trade or investment), due to the potential for positioning for what could be a multi-month+ rally in gold, should the current correction off the divergent & overbought high put in earlier this month have already run most or all of its course. The suggested stop for this trade is 133.49 with a suggested beta-adjusted position size of 1.0 (i.e.- a typical position size).
GC daily March 16th
To be clear, this is an aggressive entry on what I call a “catch-a-falling-knife” trade as gold is still in a near-vertical drop since that divergent high was put in just 5 trading sessions ago on March 9th. As such, pass on this trade if it does not mesh with your trading style, risk tolerance or your own analysis/outlook for gold. The daily chart of /GC (gold futures) above shows /GC reversing (so far) off the bottom of the 1469-1459 support zone which coincides with the 136.37ish support level which GLD has hit & reversed off of so far today.
Note RightSideOfTheChart.com was just updated/migrated to a new, more powerful web server. It appears that this post was not published when submitted about 50 minutes ago although GLD & /GC still appear to offer an objective entry at this time. Please pardon our dust as the migration to the new server may cause temporary issues with the site today.