Phantasmix Stock Market Blog

(GLD: 167.64 0.00%), SPDR Gold Trust ETF

2-year daily chart of GLD, gold ETF.

• Inverse head and shoulders (bullish pattern)
• Also bullish is the symmetrical triangle, really looks a bit like an ascending triangle, which is a continuation pattern

Since these are fairly long-term patterns (not a month or two), I think they are more reliable.

Gold should break out soon.

Trade: either short DGP or long DZZ (favoring short DGP at the moment, this may change)

Trade is based on GLD levels –

Entry: break under $82.50 (bottom of the current sideways channel + bottom Bollinger Band)
First target: $78
Second target: $72.50
Stop: $84.15 (2% above $82.50)
Risk: $1.65
Potential profit: $4.50 (min)

Click charts to enlarge