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SPDR Gold Shares Headed to $145

Published 04/03/2013, 03:46 PM
Updated 07/09/2023, 06:31 AM
GC
-0.10%
GLD
-0.09%

Shares of SPDR Gold Shares (GLD) have been the subject of bearish forecasts by us for several months now.

Critical Support
The metal is approaching critical support that will determine whether the bull market is ending or if a reversal is near.

Just a week ago we wrote: We are looking for another test of the February 20th correction lows at $150.84 over coming days. But for the sake of those who like trying to do so, we will peg the bottom of this decline around the $145.00 level. With share prices holding just above the $150 level which acted as support back in June, 2012, we are looking for one more break lower, and then a quick selloff to the $145 level.

As of this writing, GLD was trading at $150.22, a break of the correction-support lows reached on February 20 at $150.84.
SPDR Gold Trust
Chart Courtesy of StockCharts.com

The $145 level is now close and this is the do-or-die long term support level for GLD.

Levels To Watch
If GLD makes a decisive close below $145, look for the selloff to escalate. This long term support level goes back to May and July of 2011.

If we reverse at or above $145, and especially if we get a bullish reversal day, we could have a tradable rally ahead.

Even with a rally, the $145 remains a threat -- if broken -- in coming weeks. Only a new defined uptrend would cancel out the current downtrend in gold. That will take time, assuming $145 holds.

The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy does not have a position in the SPDR Gold Shares.

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