Scott’s Investments submits:
The move down in gold on March 8th surprised many traders and flashed an exit signal based on MarketClub’s daily "Trade Triangle" technology. As Adam Hewison mentions here, he feels that gold is in a broad trading range and is not optimistic that it will shoot higher.
If you are interested in a trading strategy on Gold or a Gold ETF such as GLD, I detailed a relatively low risk/minimum exposure strategy that produced an 11%+ annual gain on GLD here using stop losses and trend technology that seeks to identify trending markets.
As you can see by the Finviz chart below (click to enlarge), Gold appears to be in sideways mode. I would watch the 50 day moving average and also wait for breakouts above clearly defined trendlines before entering a long trade:
The action Monday confirms that we have more of a two-way market. I expect we’ll see further selling on any rallies from this level. GLD currently has a -55 trend score (on a 100 to -100 scale) so until clearer signals develop, I am neutral on Gold.
Disclosure: No position in GLD