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.