The Gold Trade is on! $GLD – September 12, 2024
This is Scott McGregor at Scott Trades on Twitter, and I work with Dan Fitzpatrick at StockMarketMentor.com. Two weeks ago I brought Gold ( NYSEARCA: GLD ) to your attention with a video that I did, stating that I believed the pullbacks in Gold ( NYSEARCA: GLD ) were buyable.
Hopefully, you took advantage of the pullbacks in Gold ( NYSEARCA: GLD ) because today we ended up getting a nice breakout here in Gold ( NYSEARCA: GLD ) and some of the gold miners. Now, how did I know this was going to happen? I don’t have a magic 8 ball; my crystal ball is in the repair shop. But I will show you what I was looking at here on Gold ( NYSEARCA: GLD ). And then, ideally, you can take this tactic and implement it the next time you’re looking at a chart that is trending up.
What we see here on GLD ( NYSEARCA: GLD ) is, we see progressively higher lows. Here, at the beginning of August, we had a pullback just above that 50-day moving average. And then we had another pullback right here just under the 8-day exponential period moving average. And then what do we have? We have a low here, and then we have a higher low. Following that we had another pullback under the 8-day. And in fact, printed another daily higher low. So we have three higher lows in a row.
Just the other day we had another higher low, so this low over here, right here on this red candle, is 228.26. And then here on this day, on September the 3rd, we have a pullback, and the low is 228.52. So the buyers actually had to reach up a little higher to get the stock or the asset that they’re trying to buy.
So the buyers didn’t let the stock break down, they didn’t let it come down, down to the 50-day moving average. They were too aggressive, they wanted to buy it, you can follow the money. The money was coming in and supporting this at progressively higher and higher levels from the beginning of August up until now.
Then we have a nice base of consolidation, where the asset really isn’t going anywhere. It’s just consolidating, and every time it dips down, those dips are being bought. This is a trick and a tactic that I use all the time when I’m looking for something that might be breaking out soon or feels like something is going on with it.
Or something is bubbling underneath where there’s some hidden strength that maybe you’re not hearing about in the news or anything like that. Ideally, you can use this tactic and then implement it to position yourself so that when something does break out you’re adding to that position. You’re not starting a position and that will lower your cost basis.
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