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GLD - Bottom Is In But Do Not Chase It

|Includes:SPDR Gold Trust ETF (GLD)

GLD - $133.92.

The bottom is in but do not chase it. Buying on dip is still the good strategy until we see higher lows or a break out. It takes time to reverse the trend.

The following chart showed how GLD bullish reversal was developed during the period from May to October in 2012. It tested $148.00 level four times but with higher lows before breaking out its $157 strong resistance:

Right now we are still in the early stage of its rebound. We hope to see higher lows but have not seen one so far:

Therefore we will keep watching its development and the macro environment before committing more money into stocks into gold/silver ETF and related miner stocks.

Disclosure: I am long ABX.

Stocks: GLD