This long-term chart of GLD reveals that we have entered the next bearish cycle for the Gold market. This cycle of the Gold market peaked a couple of months ago and seems to be following the same trend from the last cycle. In fact, if we use the fib-retracement tool to plot the pullback from the first pulldown from the peak, we can see that GLD has bounced up and found minor support on the 100% fib trend retracement line.
We can now expect a rise to the 61.8%-38.2% levels before falling down from there again. Be careful shorting puts or going long in those levels as we may never see another ATH for months if not years.
Trade Idea: Short GLD around $171-$180.
While it is unlikely for it to keep rising higher to new ATHs anytime soon, you can set stop-losses above at a comfortable level while leaving enough wiggle room. We can expect GLD and Gold to continue to fall from those $175 levels down below the $156 fib support, and then the 148 support area. Once the price breaks those levels, we can expect a high-velocity waterfall sell-off to the $136 support area, where we can also take some profits on the way. The key support area and the final price target is the parallel channel support around $107.5-$115, which we can expect to see in anywhere from 9 months to 5 years.
We can now expect a rise to the 61.8%-38.2% levels before falling down from there again. Be careful shorting puts or going long in those levels as we may never see another ATH for months if not years.
Trade Idea: Short GLD around $171-$180.
While it is unlikely for it to keep rising higher to new ATHs anytime soon, you can set stop-losses above at a comfortable level while leaving enough wiggle room. We can expect GLD and Gold to continue to fall from those $175 levels down below the $156 fib support, and then the 148 support area. Once the price breaks those levels, we can expect a high-velocity waterfall sell-off to the $136 support area, where we can also take some profits on the way. The key support area and the final price target is the parallel channel support around $107.5-$115, which we can expect to see in anywhere from 9 months to 5 years.