I was extremely premature in my exit of GLD last week, but it’s not totally out of the water yet and it was just a trading position. While it looks great on the longer term charts from a technical standpoint, I really want to see it break through that RSI downtrend line on the below daily chart. At that point it would firmly be above the 60 line (RSI bearish high range) and ideally heading towards the overbought 70 level where it could possibly pick up some momentum.
Looking at the longer time frame below it just looks “too perfect” to head up to new highs and we may have one more sell off coming to shake out the weak hands. I like to call it maximum frustration.
William Bonner’s closing thoughts at Agora Financial:
“Hold onto your gold, but just don’t expect to get rich from it anytime soon.”
