While the SPDR Gold Trust (GLD (NYSE:GLD)) is having a solid day of trading today, there is some developments that should be of concern for you traders holding a long position in it.
Now, I'm not saying to short it right here, right now. Far from it, because it could easily breakout to new highs in the near-term and if so should lead to further price expansion.
But as it stands right now, there is a glaring double top forming on its daily chart that you have to pay attention to.
So this is what I would say: while it trades sideways between $125 and $130-ish, all is well. There wouldn't be any reason to short the stock. Drop below $125, and I think you have a very good reason to get short on GLD.
If you get short though, don't expect it to be some magic carpet ride for you. There is a major rising trend-line off of last December's lows that will come into play in the low $123's. If that price level breaks, then you have a much bigger move on your hands that should send price down to $115.
So those are the parameters to work with.
