In the Monday morning edition of the Trade Report, I mentioned that I was bullish on the gold sector and was waiting for a pullback. A few readers wanted to know at what levels I would consider entering.
Let’s take a look at the GLD chart. When looking for support and resistance levels, I want them to jump out at me. The first thing that jumps out at me is the two failed attempts to really past $94, followed by the current gap up over that level. This is where I define the new support level. If we get a nice orderly pullback into the $94-95 range, I will enter. However, if the pullback is on a large bar and many of the gold related stocks are declining on heavy volume, I will skip the trade.
In the free Wednesday edition of the Trade Report, I discuss:
My QLD entry, this crazy market and relative strength
A few recent positions, X, ILMN and JOYG
Bearish engulfing and flag setups
The Weekly Watchlist
Diversification by way of setups.