With the market dropping fast and fear rampant over the past couple weeks, gold has continued to be a safe haven, making new all-time highs. Central banks, especially China, who are losing confidence in global currencies, especially the dollar, are buying gold aggressively for safe-keeping. While it’s tough to be a buyer of (NYSE:GLD) here, I still expect significant upside due to continued demand.
Gold has traded very well technically on its dramatic rise over the past few years. The first pattern was “the wedge” that broke in December 2008, which gave you the first to the Reverse Head and Shoulders pattern forming in GLD. The Reverse Head and Shoulders, which is a bottoming pattern, triggered in October 2009, and never violated the breakout showing commitment to the long.
After the first big move from the $90 level to $120 level, in the summer of 2010, GLD created a clean Cup and Handle Pattern, which triggers a move for higher prices.
Now in 2011, GLD has given two breakout trades as it consolidated for a few months in a long channel, to make a move into new highs. The last entry was a break above $154 in July 2011. It looks like GLD is in the last stage of a parabolic move up to the $2000 mark.
A lot of people are looking for reasons as to why gold continues higher, but sometimes it is as easy as a breakdown of technical analysis, which T3Live prides itself on. In the last 3 years since GLD came on our radar, there have been some strategic buy and hold strategies along with some short-term cash flow opportunities, as traders can take advantage of trading around their potential macro positions.
This is a weekly chart of GLD that outlines the technical patterns that has triggered GLD to go higher.
Below are my links from CNBC about gold, where I have been bullish since 2008, initially predicting gold should see $1500 back when it was priced at $850.
This was back from 2008 when I first made the call with Marc Haines and Erin Burnett.
Below is the strategy back when gold was getting ready to break the wedge.
Below is where gold already had the move up to $1200+ and we gave a strategy to buy the dip.
There are about 10+ more segments that I’ve talked about the move with targets of $1700-1800 and perhaps $2000+ if worst case type scenarios unfold. We are now in that extention phase that makes it hard to buy (we don’t chase at this end of a pattern), but every sale so far has been a bad on.
Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader. Scott Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Scott moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, he maintained his status as a top trader in the industry while working closely with all traders in the firm to dramatically increase performance. Scott has participated in more than 30 triathlons and one IronMan triathlon, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business and Bloomberg, and he has been quoted in the Wall Street Journal and Investor’s Business Daily among other publications. Scott produces much of the media and content available to subscribers and followers. T3LIVE.com is an online financial media network and education platform that provides active traders and investors with market analysis, real-time access to strategies, and in-depth training from real traders, real-time.
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