Just like the denizens of Edwin A. Abbott’s “Flatland”, two-dimensional shapes surround GLD on this one-year chart. From highs near $186 last September, GLD fell to lows near $148 a number of times, without breaking this support line. Now this ETF is pressing back up to the descending line, which today is at 162, and by Sept expiration will be near 160. We’ll be looking hard at some bull call spreads once the options market opens.
Also of interest, GLD stuck it’s head above the 200-day simple moving average for the first time since March 27, ending a nearly 5-month run below this important indicator. It’s a safe bet that there are a lot of bulls out there getting ready for a big run, but things rarely run up in a straight line.