Huge support underneath SPDR Gold Trust (GLD) right now which is what immediately attracted me to this bounce setup. Maybe it doesn't hold but it has such a clear level of support, that if it does not hold, I can get out of the trade with a minimal loss.
If the trade works, then the reward when compared to the amount risked will be far greater.
There is also support at the 20-day moving average that has held, on the last four attempts. Finally, the on-fire commodity has pulled back a bit which has helped to alleviate overbought concerns, and it comes at a time when the market is also extremely overbought. Should hte market pullback some, we should see additional bullishness out of GLD.
Here is what I am seeing here:
(Click on image to enlarge)
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