I wrote about in the weekend update, has been resolved to the downside, triggering a Bearish Catapult sell signal (pink box). Now we have a cluster of bearish price targets, derived from the recent price action. The vertical count from July’s highs points to 121. Two different horizontal counts from the July congestion area (green rectangle) on the 1-box reversal chart (not shown here) give us price objectives of 123 and 120.5. There is also a confluence of the interim rising Bullish Support line and horizontal support at the 121.5 level. It makes me believe that the 121-123 area is a potential target zone for the ongoing decline. A rise to 128 will lead to a revaluation of the chart.
I have entered a vertical bear spread on weekly puts today.
Bought to open GLD 23Aug13 128 Put 10 contracts at $3.41
Sold to open GLD 23Aug13 122 Put 10 contracts at $1.06