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Gold: How Low Will It Go?
Courtesy of David of All About Trends
There is an old saying that applies today and that is: Wear em out or scare em out! This is an ugly looking chart.
Much like the biotechs are looking they're in the midst of climax runs, here the flip side – gold's performance looks like a capitulation low. What do climax runs and capitulations have in common? Both mark the beginning of the end. In a climax run, the run is ending; in a capitulation, that fall is ending. It doesn't happen in a day, but rather there's a zone in which the price drama plays itself out.
GLD's five year chart (above) shows areas of support in the blue lines that are fast approaching. I think GLD is in that capitulation zone.
Long term gold holders? I think you might as well gut it out, although you're probably in for a roller coaster ride. For trading, I'd probably get out on a bounce to 148-150.
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