September 27, 2011
After a huge selloff in SPDR Gold Shares (NYSE: GLD) on September 22-23, with bullion prices diving some 7.9% in only two days. Shares again declined on Monday, September 26, propelling Gold Shares to new correction lows.
It is hard to believe that gold shares were at a new all-time high only two weeks ago. But the high came after a parabolic rise and gold has always been an incredibly volatile trade.
At this point any trade in Gold Shares would be, to our way of thinking, too risky.
Because all support levels have been broken in this fast decline, the potential for Gold Shares to reach as low as $145 a share is possible. That leaves another 7% of downside risk.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy does not have a position in Gold Shares.