Here’s how Scott is trading $GLD – February 22, 2022
GLD
This is Scott with your Chart of the Day. I want to follow up on Gold ( NYSEARCA: GLD ). Gold ( NYSEARCA: GLD ) has been a great trade the last couple of days here. I picked up some Gold ( NYSEARCA: GLD ) on this day here, this is Friday, February 11th. It had a really nice move coming out of this clear downward sloping trendline on higher than average volume.
I then, basically, sat through a little of this volatility. Because Gold ( NYSEARCA: GLD ) has been so tentative I was afraid to really get too big in the position and then have to sit through just a normal ebb and flow of what I thought might happen with Gold ( NYSEARCA: GLD ).
We ended up getting a nice backtest of this breakout and follow-through the next day. I did add a little bit on this day here and ever since then I just kind of sat through this upside move. Now today, I did take partial profits on Gold ( NYSEARCA: GLD ). And it’s not because I believe that this trade is over but I just want to respect the risk.
Now that we are this high above that 8-day exponential period moving average I just want to be a little more cautious. So I did take partial profits on this position today and now I just want to sit with it and watch for a potential gap fill to the downside and maybe a little bounce off that 8-day exponential period moving average.
It bounced off there before and ideally it should come back and bounce nicely again. And if it does bounce nicely again I could look at that as a potential reload point for my position here on GLD ( NYSEARCA: GLD ).
On the weekly chart, the chart looks fine. We are nicely above this downward-sloping trendline and like I said, just a little bit of a rest week here. So ideally we get a bit of a weekly higher low and then some consolidation here on the daily chart before a continuation higher.
That would also give these moving averages a chance to catch up to price. And as you have seen price tends to act like a magnet to these moving averages. And so we want to see the moving averages catch up, just kind of rest here, and then another leg higher.
That’s what I am doing with Gold ( NYSEARCA: GLD ), hopefully, you have been able to make some money off this trade. It has been one of the few sectors that are working in this market.
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