Yesterday’s price action saw GLD opening with a gap down below the kumo.
This is a bearish confirmation for GLD.
However we need to take note of GLD’s behaviour on the Daily Chart for 2010.
In 2010, twice the price went below the kumo. And it manage to climb back up the kumo and went on to make greater heights.
There is a need to be careful if we are going to short GLD
Take a look at the Ichimoku Weekly Chart below
Noticed how the trend on the Ichimoku Weekly Chart held up since 2009?
On the Weekly Chart, we can see that the Kijun sen is flattening and this suggest price consolidation with support at around $130 and $120
GLD can be a short term trading ‘short’ but I will be careful to go for a convicted long term short.