Gold Chart (GLD) – More Room to Fall

I charted the large Gold ETF, GLD, this afternoon and see more room for gold to fall.  GLD was trading at $112.14 when I drew the chart below and is very close to touching a new potential line of support, but if this line breaks GLD could easily fall another 15%.  The trend line holding support today is the part of the same line GLD touched yesterday and from early July until early November was the trend line of higher highs.  That same line that was resistance could become support now.  Just a couple of days ago, a shorter trend line with a similar history couldn’t hold support and is now acting as resistance again.  Along with this other trend line that broke, so did the 10 and 20 day moving averages.

To find support if the first trend line I mentioned breaks, GLD would have to drop to around 108 where the next trend line of higher lows meets up with GLD’s 50 day moving average.  If there is a safer entry point to open a new position on GLD it’s closer to the longer term trend line of higher lows which is trending at a much lower angle and more reliable because of that.  That’s closer to $97.00 which is also close to the line of intraday lows from most of October.  I didn’t have space to include the 200 day moving average, but will note that it’s not much above $95.00 right now and could be another reason to consider the $97.00 range as a better entry point.