With its two-day rally, gold has turned positive on the year and is making a run back at $1,200. But despite the move higher, one trader is betting that the rally will be short-lived.
On Tuesday's "Trading Nation," Andrew Keene, a trader who relies heavily on charts and the options market, said the momentum in gold remains with the bears.
Looking at a chart of GLD, the ETF that tracks gold, Keene noted that its 20-day moving average is dangerously close to crossing back below its longer-term 50-day moving average. For Keene and other technicians, when a short-term moving average crosses below a long-term moving average, it is considered a sell signal. "This shows that short-term momentum is still on the side of the bears," he said.