Downward pressure still remains on gold as we bring in the month of May. My price target of 123.00 on the gold etf GLD had almost been breached today but it looks as if we hit 123.06 and bounced, ending the day at 123.80. I was expecting a little bit of upward movement due to the beginning of the week being mostly bearish. Instead gold continued to fall for it's fourth straight day in a row. This gives me confidence that downward pressure will remain until our breach of 123.00 is met. For now I am still weary of placing any trades as gold still remains in it's inflection point. I would like to see downward momentum increase passed our target to give me confirmation that the trend remains down. At that point I will place a trade shorting GLD via a put contract targeting 121.00 with an expiration of May 30. It's possible that I might extend the expiration of the contract depending on how long it takes to break through our current target of 123. It is very likely in my opinion that GLD will have no problem shooting right pass 121 in 30 days time, given our current target is met in the next trading day or two.
Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in GLD over the next 72 hours.