Gold (GLD) Might Still Have Massive Downside Left
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Price: $415.26 +0.34%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Is gold going back to $1,300 per ounce?
According to a Reuters report Monday, this might be the case. Analysis by one principal from Futurestechs shows gold may have begun to break down over the last several quarters.
He said gold has been rallying in September and October, keeping within a nice upward channel. Gold also formed a "double top" in August and September, and broke below the $1,705 level in mid-September, showing strong volume on the move.
The analyst believes $1,685 per ounce might also be an important level given a Fibonacci retracement.
Key support may be $1,535 or $1,585. The numbers are based on daily and weekly channel patterns.
Should gold pass through those levels, the next support level would be at about $1,300, suggesting about 22 percent downside.
SPDR Gold Shares (NYSE: GLD) is up 1.6 percent Monday.
According to a Reuters report Monday, this might be the case. Analysis by one principal from Futurestechs shows gold may have begun to break down over the last several quarters.
He said gold has been rallying in September and October, keeping within a nice upward channel. Gold also formed a "double top" in August and September, and broke below the $1,705 level in mid-September, showing strong volume on the move.
The analyst believes $1,685 per ounce might also be an important level given a Fibonacci retracement.
Key support may be $1,535 or $1,585. The numbers are based on daily and weekly channel patterns.
Should gold pass through those levels, the next support level would be at about $1,300, suggesting about 22 percent downside.
SPDR Gold Shares (NYSE: GLD) is up 1.6 percent Monday.
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