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Tuesday, March 1, 2011

GLD Breakout confirmed

In case anyone is confused, this is what a breakout looks like on a monthly chart.

This is why a core bullion position that is never traded is so important in a bull market. In fact, in a multi year bull market (like this one) you can always add to core positions on breakouts. Or any time at all. In a year gold will be much higher.

However, in a pure trading account, if you missed this move, don't chase it here, unless you are a very nimble trader. It can and probably will keep moving to new highs for a week or two. But it will test this breakout. It always does. And at some point it will retest the upper trend line, which is now support for the entire move.

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