How Low Will The SPDR Gold ETF Go? (NYSE:GLD)

Gold managed to hold this week with a low higher than last week’s low.  However, the SPDR Gold ETF (NYSE:GLD) did not.  Sooooo…. with that bit of ambiguity, I’ve got to think we likely have not seen the bottom in gold as of today.

A couple of possibilities for the bottom.  First, let’s look at them with trend lines,  then Fibonacci, and finally the midpoint consolidation pattern.

This chart attempts to demonstrate that there is a trend line in the current C wave that takes its beginning in February and projects to around $1,165 (aqua).  The other trend line is of the entire C wave that began a year ago in July 2009 (purple).  That projects to around $1,165.

 
 
 


Here is a look at the Fibonacci dissection of the current C wave to date.  The 23.6% retracement level comes it at right around $1,181 – nearly exactly where the aqua trend projects.  If this price level prevails next week, and it is certainly possible, we could now be only $10-15 above the final low.

We have looked at this pattern more than once already, but it also projects the price to around the $1,164 area as does the purple C wave trend line above.
 
Website:  The TSI Trader

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