There are two stop points here, one is 3% under the September low, at 70.33 (on close) and the other is 5% under it, 68.88. If GLD does not hold here at these stops we will be out and waiting until a confirmed uptrend begins.
Today’s action is good and bad. Good because it has some aspects of a reversal day, that is a long exploration down much of which was recovered. Bad because of the downgap and the fall below the 2005 trendline. And, a lower low has been made. Bad. As productive as gold has been it does not do to be married to it. Maybe a divorce is in order.
The 4 months chart pattern suggests a Triangle with 96.17 July high, 73.08 low in September and breakout (downside) in October around $82. Should bring us to a target price of $66.5 reached yesterday. If we would go more down the June 07 support is $63.6. This morning we seem to be <$70. Any ideas?