There are now approximately six months since I posted my Gold (GD) speculation. Since then Gold has been dropping steadily, re-tracing on a regular basis, though always showing lower lows and lower highs. A typical downward trending movement.
I mentioned that Gould was likely to be heading downward and so it is. Now it’s only a question how far down does it go and will it break through the 1,520 support.
In my post I pointed to the potential tunnel of 1,520 to 1,800 and now we’re reaching the bottom of that tunnel. In the coming days and weeks, we’ll see if this is just a part of the tunnel activities, or if this is the brake-out Gold needs, to get moving.
Tunnels can easily go on for months, even years. Tunnels close to the top of an exceptional run are on the other hand something that we can not expect to last.
Personally I would be preparing a short here, but we should at the same time be prepared for the markets to move upwards. We only got two ups in this tunnel and the third one might be advisable to support a strong break-out on the short side.
What ever happens, we can be sure it’s going to be interesting.
This is just my view on the situation and like I always say, don’t take my word for it, do your own research.