6 Mo: "
Gold is continuing to retrace. Option expiry offers the manipulators the opportunity to take a shot at gold, but they do not have the horsepower to keep it up IMO. Price bounced right at the 18 day MA which was the target when stochastics lost embedded status by crossing the 80 line. Monday will show if support hold, with additional support at 110 made up by both the 45, and 100 MAs. On initial low set on wednesday, I bought some call options detailed below and on my Facebook page. I will allocate another 1/3 to this trade if price reaches 110.
Gold is pulling back today from resistance established at the prior high of 113.50 back in January. My bet is that gold finds traction @ the Fibonacci 38.2% retracement line, or around 112.30. If that does not hold, then the 50% retacement line along with the 18, 45, 100 day moving averages provide support @ 110. I ...filled Jan 2012 110 calls @ 16.60. I will phase in this trade during price pullbacks, and have allocated 1/3 to this purchase. My goal on this move is 125 for GLD and my call option has a delta of .62, so my option target is approx. 16.60 + 12.5 x .62, or 24.30, which yields a return of 46% for the trade.
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