We have a “double top” and we came right up to resistance at the 50-day moving average. Couple that with a stock market that is showing a possible bottom and you can make a bearish case for Gold.
Reference the chart below to see how we constructed a debit put spread in the Gold ETF (Ticker: GLD). We purchase the GLD 5/24 weekly expiration 119.5/121.5 put spread for $0.60. If we max this spread out, we will have a reward to risk ratio of 2.33:1.
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