There is a magic indicator for GLD -- 150 day MA. As you can see in the chart, GLD has been supported by this MA since April 2009. Everytime, it corrected down towards this line, it bounced back. Gold is obviously in an uptrend. August through Octobor is a strong price period for gold. If you enter long on or about Aug 25th and hold until Sep 30th, in the past 34 years this trade has worked 20 times for a success rate of 58.8%. The last eight years have provided an amazing cumulative profit of $20,160 per futures contract.
6 comments:
if that's the case, does it mean the stock market will sink between aug 25th to oct. XX?
Well, it is very likely. If gold's move up is due to risk aversion, the stock market should fall. However, if economy has a strong recovery, gold and stocks can both go up.
Yes, Gold is in an uptrend. However, on daily chart, 150ma is flattering which indicates a possible lower high is in the making.
No worry, the trend is still up.
none of the reports indicated a strong recovery, but of course, the reports are hard to predict. another q for u, why aug 25th? the gold has been up. Are you saying you would expect a dip between now or near future and aug 25th?
That's historical average statistics. Different years has there own pattern. However, the statistics can provide a bias.
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