Hot on the heels of the latest revelations in the Trump-blabbing-secrets story, gold popped overnight. Right around 7:30 last night Eastern time, GLD popped up through the 118 level we’ve been watching. This is one of our key levels – where investors seem to be making entry and exit decisions at a much higher rate.
The 6-month chart shows that GLD continued up to its 120 level the last four times it went above 118 in a row. But, the 2 times before that it didn’t make it to 120. So it’s a bit of a horse race, as they say in Kentucky. Meaning it might go to 120, and it might not.
This is nothing new in the world of gold trading. The market does what the market wants to do, every time. Our job is not to force it to do what we want – not rich enough to do that! – but rather to make intelligent risk-reward trades as they present themselves.
One thing we do want to note is the recent low (trough bottom, valley, wave etc) of GLD is higher than the previous low. And the recent high was higher than the previous high. Higher highs and higher lows are the definition of an uptrend…