Gold (GLD) Might Still Have Massive Downside Left
Tweet
Share
E-mail
Get Alerts GLD Hot Sheet
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
Join SI Premium – FREE
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Morgan Stanley is out with its gold price outlook for 2027
- Rubrik Inc (RBRK) PT Raised to $120 at Oppenheimer; Sees Another 'Beat and Raise'
- Gold rebounds toward $4,450 on US policy uncertainty
Create E-mail Alert Related Categories
Analyst Comments, CommoditiesSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
