How Low Can Gold Go?
There is an old saying that applies today and that is:
Wear em out or scare em out!
It doesn't take a rocket scientist to see which it is with GLD:
Much like the bio's are looking like climax runs here the flip side of a climax run is a capitulation low. And when we look at gold, it sure is looking like a capitulation here. What do climax runs and capitulations have in common? Both mark the beginning of the end. In climax runs that end is the end of running up, in capitulations that end is the end of going down. It doesn't happen in a day mind you but call both the bios and GLD in the zone.
When zooming out to a bigger chart you can see areas of support as shown by the blue lines that are fast approaching.
Long term gold holders? You might as well gut it out for a bit here. Might be a bit of a roller coaster but there is also a higher level to consider walking away if your courage of conviction is getting tested here and that would be on a bounce up to the 148-150 level.
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Disclosure: I am long GLD.