{"id":4485,"date":"2016-06-09T16:17:07","date_gmt":"2016-06-09T20:17:07","guid":{"rendered":"http:\/\/www.morpheustrading.com\/blog\/?p=4485"},"modified":"2022-04-06T15:05:01","modified_gmt":"2022-04-06T19:05:01","slug":"gold-etf-2016","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/gold-etf-2016\/","title":{"rendered":"Here&#8217;s how that bullish analysis on Gold ETFs worked out&#8230;"},"content":{"rendered":"<p>In our February 4 blog post entitled <em><a href=\"https:\/\/www.morpheustrading.com\/blog\/buy-gld-etf-2016\/\" target=\"_blank\" rel=\"noopener\">Why It Is Time To Buy Gold Right Now<\/a>,<\/em>\u00a0we shared with you the reasons we were expecting a pickup in bullish momentum on gold ETFs.<\/p>\n<p>Now, we follow up with that article to show you exactly how that bullish analysis led to a<strong> 10% percent price gain<\/strong> in our\u00a0<a href=\"https:\/\/www.morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noopener\">stock and ETF trading report<\/a>\u00a0over\u00a0a 6-week holding period.<\/p>\n<p>Continue reading to see why we bought and sold exactly when we did, AND to learn <strong>how you can still profit from the next gold rally<\/strong> that may be coming soon.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">TABLE OF CONTENTS<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/morpheustrading.com\/blog\/gold-etf-2016\/#Golden_Opportunity\" >Golden Opportunity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/morpheustrading.com\/blog\/gold-etf-2016\/#Failed_Breakout_Get_Out\" >Failed Breakout = Get Out!<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/morpheustrading.com\/blog\/gold-etf-2016\/#Prepare_For_The_Next_Gold_Breakout\" >Prepare For The Next Gold Breakout<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Golden_Opportunity\"><\/span><strong><span style=\"color: #333333;\">Golden Opportunity<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Although we mentioned to subscribers they may prefer to buy a <a href=\"https:\/\/etfdb.com\/type\/commodity\/precious-metals\/gold-etf\/\" target=\"_blank\" rel=\"noopener\">leveraged gold ETF<\/a>, such as ProShares Ultra Gold ETF ($UGL), rather than the more popular, but less volatile SPDR Gold Trust ($GLD), our &#8220;official&#8221; newsletter trade entry was into $GLD.<\/p>\n<p>The daily chart of $GLD below shows\u00a0the technical trade setup in the gold ETF prior to our\u00a0buy entry, which was on\u00a0January 27 at $106.87:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2014\/160316GOLD1.png\" alt=\"GOLD DAILY\" title=\"\"><\/p>\n<p>Fast forwarding six weeks later, the next chart shows the subsequent price action in $GLD that followed our buy entry:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2014\/160316GOLD2.png\" alt=\"GOLD SELL\" title=\"\"><\/p>\n<p>As shown on the chart above, $GLD followed through to the upside within a few days of our entry, breaking out above resistance of its 200-day moving average (orange line) on substantially increasing volume (which is also bullish).<\/p>\n<p>Within two weeks of our January 27 buy entry, $GLD had rallied all the way to the $121 area (approx. 13% advance beyond\u00a0the entry point).<\/p>\n<p>Considering this\u00a0price action of the shiny commodity, our timing on the $GLD buy entry was apparently quite ideal.<\/p>\n<p>However, since a 13% gain in such a short timeframe is pretty large for a commodity ETF, $GLD unsurprisingly entered into a multi-week base of consolidation (a correction by time).<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Failed_Breakout_Get_Out\"><\/span><strong>Failed Breakout = Get Out!<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>After a few weeks of consolidation above the rising 10 and 20-day moving averages, $GLD pushed above resistance of a short-term downtrend line (descending black line on chart above) and rallied to a high of $122 in early March.<\/p>\n<p>But rather than continuing higher, bullish momentum stalled out, causing spot gold and $GLD to fail the breakout attempt and close at the intraday low on March 11.<\/p>\n<p>The bearish reversal candle that coincided with the failed breakout was a negative\u00a0sign after an extended run, so we made a judgment call to tighten our protective stop.<\/p>\n<p>That tightened stop triggered on March 14, around the $118 area, enabling\u00a0subscribers of\u00a0\u00a0<a href=\"https:\/\/www.morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noopener\"><em>The Wagner Daily<\/em><\/a>\u00a0who took the momentum\u00a0trade to lock in a solid price gain of approximately 10% on $GLD (pretty decent\u00a0move for a\u00a0non-leveraged ETF).<\/p>\n<p>For those who missed the initial advance or those looking to re-enter, a little patience is required to wait for a low-risk entry point to develop.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Prepare_For_The_Next_Gold_Breakout\"><\/span><strong>Prepare For The Next Gold Breakout<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Although we have been monitoring the price action of gold for a potential re-entry point, $GLD has merely been stuck in a choppy, sloppy\u00a0sideways range since our mid-March exit.<\/p>\n<p>$GLD briefly probed above the highs of its recent range to a new high in late April, but the breakout again failed.<\/p>\n<p>Nevertheless, gold has once again been grinding its way back toward the upper channel of its multi-month resistance and may soon make another attempt to breakout.<\/p>\n<p>Since each subsequent breakout attempt weakens price resistance by absorbing overhead supply, odds of\u00a0the <em>next<\/em> breakout succeeding may be\u00a0pretty good.<\/p>\n<p>To make sure you are instantly alerted to our next buy entry into $GLD, <strong><a href=\"https:\/\/www.morpheustrading.com\/services\/swing-trade-alerts\">sign up now<\/a><\/strong> for your risk-free trial to our nightly newsletter.<\/p>\n<p><em>Planning to buy some gold, or have done so already? We\u2019d love to hear about it, so drop us a comment below. Thanks for reading and, as always, good trading to you!\u00a0<\/em><\/p>\n<div class=\"cfmonitor\" style=\"padding-top: 30px;\"><center><script src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\" async=\"\"><\/script><!-- Footer of content - Large --> <ins class=\"adsbygoogle\" style=\"display: inline-block; width: 336px; height: 280px;\" data-ad-client=\"ca-pub-7565144363001883\" data-ad-slot=\"6017996961\"><\/ins><script>\/\/ <![CDATA[\n(adsbygoogle = window.adsbygoogle || []).push({});\n\/\/ ]]><\/script><\/center><\/div>\n","protected":false},"excerpt":{"rendered":"<p>In our February 4 blog post entitled Why It Is Time To Buy Gold Right Now,\u00a0we shared with you the reasons we were expecting a pickup in bullish momentum on gold ETFs. Now, we follow up with that article to show you exactly how that bullish analysis led to a 10% percent price gain in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[3],"tags":[],"class_list":["post-4485","post","type-post","status-publish","format-standard","hentry","category-stock-trading-strategy"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/4485","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=4485"}],"version-history":[{"count":1,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/4485\/revisions"}],"predecessor-version":[{"id":11264,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/4485\/revisions\/11264"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=4485"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=4485"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=4485"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}