Weak Reversal @ 23.6%
Gold’s hanging on … just ticks away from posting a new monthly low.
It hasn’t looked good for the bulls ever since the ‘changing of hands’, discussed over seven months ago, linked here.
From that update, we have a useful quote concerning the massive GLD, volume spike, posted on March 8th:
“Such volume spikes typically indicate the potential for a long-term, sustained reversal.”
How long, is long term?
Well, it’s been seven months and counting …
The weekly chart of GLD below, shows retrace, test and reversal, at a very weak Fibonacci 23.6%.
Since the GLD, high on August 6th, 2020, it’s been over two-years of sideways-to-down.
Gold (GLD), Weekly
The blue line is the 23.6%, retrace level.
Price action has oscillated around this area which in itself, provides confirmation of validity.
The chart below has a zoom of the retrace area.
Since the ‘changing of hands’, the analysis stance on gold (and silver) has not changed; we’re trending lower until price action indicates downside capitulation … at this point, nowhere in sight.
With GLD reversing at the axis line (23.6%, level), we can now use this area via the Fibonacci Tool, to project downside targets.
Target analysis is slated for the next GLD, update.
Charts by StockCharts
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