Gold still glitters... A little.

I only took one trade over the last the week. I've been particularly busy at work, and haven't had the time to research my setups to the degree that I require to have conviction to enter.

My GLD trade was as basic as you can get. Here's a 3 month chart of GLD:

I looked back to April 15th at the close price of about $131. On Friday, May 17th, I noticed that the closing price was right around that same level of $131. Even though there is a downtrend in place, the April 16 bounce indicates a presence of buyers at the 130 level. The thesis of my trade is that the test of this level will again result in a bounce, even if it fails later.

I placed my entry order before the open on 20 May to purchase a GLD Jun 22 '13 $135 call for $2.15. I was filled at $2.10. The next day, I put in a limit order to close the trade at $4.20, and on the 22nd I was filled.

Not alot to this one, but the lesson is that these opportunities are many no matter the vehicle that you chose to trade. Whether it's common stock, options, forex, or futures, major levels of support or resistance are great levels to scope out viable trades.

Drop a line if you have questions or comments. Follow me @B50cal1978 on twitter. Anything that I have a high level of conviction on, I will tweet.

Don't forget to check out the killer links to the right.

Happy trading,
STT