As illustrated in the two charts below, Gold (GLD) and Gold Miners (GDX) are on the cusp of major long-term breakouts. We are adding both to our trading portfolios, in all time frames, while awaiting fresh buy signals. Within the Gold Mining sector the following stocks are all exhibiting similar chart patterns: AEM, AU, BVN, GFI, GOLD, NEM, NG, PAAS, RGLD, SA.
Gold ETF (GLD) Weekly
Gold Miners Index (GDX) Weekly
The breakout above these long term trend lines occurs above $131 for GLD and above $25 for GDX, both basis weekly closes, and will support going long with intermediate term calls. The trade ideas below are not Blue Line System trades (which have their own signal generation pattern), but are based upon an assumption that GLD and GDX will continue higher after the breakouts at or above the same degree of ascent as of the past month. Both ideas have the potential to return several hundred percent in the next 60 days.
GLD Aug $130 Calls (currently trading around $3.50)
GDX Aug $25 Calls (currently trading around $1.00)
This trade idea is based upon geometry, not geopolitics.
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