Gareth Soloway
InTheMoneyStocks
Thursday, December 28, 2017
Gold Hits Significant Dual Resistance Point, Pull Back Highly Likely
Gold has surged in the past two weeks as the Dollar has faded. It also appears investors are buying some protection after Bitcoin faltered at $20,000 before its recent decline back to $14,000. Bitcoin was a store of safety until two weeks ago when it began to crash. Now money is headed back to trusty gold. While I am a long-term bull, there is a significant swing trade short opportunity in shares of the gold ETF $GLD. Today, the $GLD hit gap fill and also a down-sloping trend line, connecting the highs from mid-October to late November. The fact that gold is near-term overbought and now has hit two major resistance points, signals a likely pull back. Swing traders can look to short gold by buying the $DGLD (3x gold bear ETF) or just shorting the $GLD. The $GLD should retrace back from its current price of $122.85 to $121.00 in the coming week.
