Gold should now stay below the previous 1681.8 swing high. I will add to my short Gold position on any bounce that tops below 1681.8. I am estimating that I should be able to get short around the 1661-1665 range.
Gold is finally reacting to the 1923.7 downtrend line and turning down. I will now add to my Gold short in the 1661-1665 range. Yesterday’s low was 1661 so I am estimating that Gold will at least test that level again today. I believe Gold may continue to test the 1923.7 downtrend line in the days to come but should now stay below the 1681.8 swing high. If Gold does break above the 1681.8 swing high then it is possible that Gold will head to 1760. If Gold stays below 1681.8 then it’s just a matter of time before it drops back to 1600. Gold has support at 1644 and 1629 from the 200 and 20 day moving averages and at 1600 from the 681 uptrend line.
I will continue to short via the GLD ETF as opposed to the higher leveraged GC futures contract. I am already short 100 shares from 150. Looking back this looks like an extremely bone headed move to have made but I am trying to position myself for a drop to the 100-120 range and it has been my plan to ride out any bounces so I will continue to stick to it. So I hope to get short around 162-163 when the market opens. I planned on being short no more than 300 shares (before profitability) so my latest short will bring my share total to 200 shares short.
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