Expect another round of selling of GLD after this Gold ETF broke the $130 support. Price target for this Descending Triangle breakdown is minimum $117. With the help of Fibonacci Fan, GLD may reach this target by Aug 14, 2013.
Current trade setup to short GLD using Vertical Spread.
- Strategy: Long Vertical Put Spread
- STO GLD Aug13 120 Put
- BTO GLD Aug13 125 Put
- Breakeven @ Expiry date on Aug16, 2013 = $123.22
- Maximum Profit = $323
- Maximum Loss = $177
- Reward / Risk = 1.82
- Cut Loss = GLD goes above $130