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Home › Forums › Closed Trades › Breakout in GLD
Setup: Breakout
Price: 129.20
Description:
This is one of the better trends this year… and gold has needed it as it has sucked for the past 4 years.
I’m keying off 129.20 as my trigger point. That’s a big level on a shorter term basis and if it clears that, 130 is an easy magnet and then 135 from there.
My weapon of choice is the Oct 130/135 bull call spread
There may be a failed breakdown setup if this stays weak, so I’ll also look for long entries sub 125… slightly different setup but I’ll be watching it.
The setup has evolved a bit. Selling has come into gold, and we’ve got a pretty big support level at 125.
I’m now looking for a 2b reversal setup. So look for a move under 125 then a failure to see any downside followthrough. That will be the entry.
We’re seeing signs of a failed breakdown. I’m going to start scaling into bull put spreads:
IWO Premium Order Ticket | ||||
Type | Asset | Duration | Strike | C/P |
---|---|---|---|---|
STO | GLD | 21 Oct 16 | 120 | Put |
BTO | GLD | 21 Oct 16 | 117 | Put |
Total Credit: | 0.46 |
I’ll add if GLD runs to 123 and 121. Will roll if we hit 120.
Taking profits here:
IWO Premium Order Ticket | ||||
Type | Asset | Duration | Strike | C/P |
---|---|---|---|---|
BTC | GLD | 21 Oct 16 | 120 | Put |
STC | GLD | 21 Oct 16 | 117 | Put |
Total Debit: | 0.06 |