JB from Delaware asks via Facebook Message: “What do you think about gold here? Do you think it’s ever going to resume its march higher?
Thanks for the question JB…
As for right now… GLD is holding nicely above the TAOST Magnet Zone after climbing out of it in February of this year .
The US election results coming in as I type can definitely impact the shiny stuff’s performance in the near term, but use this $97 to $113 level as a sort of fulcrum around which to base your trades…
In other words, as long as price stays above the $113 level, it’s ok to be/take longs. A break below $97 is a good signal to exit longs and head to the sidelines. I wouldn’t get short below $97 because I think gold bugs won’t let it fall much further than that… and certainly not enough to warrant taking a trade… but that, like all of this is a personal preference. It’s entirely possible that GLD will drop to $68ish [next major support level], but doesn’t seem likely to me.
In terms of a target for longs, I like first exits around $148 (just below that congestion zone that lasted most of 2012).
Hope this helps.