Monday, April 20, 2009
Gold Still Bearish, but Decline a bit "Crunched"; April 20, 2009
Gold is still declining impuslively which suggests the larger trend is down and has further to go on the downside. However it's getting a bit "bunched up". I like to see the metal's decline stretch out a bit soon for me to be more comfortable holding it short through my option bear spread on the ETF (GLD). Right now you can see from my 4hr futures chart above that it should be in a 4th wave rally. Once complete, it should break down towards the $830 level.
I remain fully short with a stop at $911.