Is Gold ETF (GLD) Heading Down to $99/share To Test the 2009 Breakout?

Some (many?) investors may be wondering how far gold is going to fall.  First of all, I don't really know and anyone who claims to know should be viewed with a healthy dose of skepticism.  But by analyzing a chart, we can look at possibilities, at least for the fun of it.

In terms of the gold ETF (GLD), the weekly chart below shows that GLD recently broke channel (or falling wedge) support and has begun to fall rather precipitously.  This was discussed in my previous post here.

One possibility is that GLD will decline to about the $99/share level where a possible support line associated with the 2009 ascending triangle breakout exists.

In general, I may be interested in investing in GLD at significantly oversold conditions and just above a support line where I can use a buy and protect strategy (assuming positive price action at support).

We are not there as far as I can tell.  In the meantime, we will just have to see what happens.

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The content in this article, including the identification and discussion of any specific security (e.g., bond fund), is NOT meant to be and should NOT be construed and/or used as investment advice. This article is for general information and educational purposes only. Please read the Disclaimers  for junkbondrecycling.com in their entirety. The U.S. Securities and Exchange Commission website has guidance on selecting an investment adviser.

Financial Disclosure:
The author/publisher has no position in Gold at the time this article was written.