Gold and precious metals in general have been a darling of the market so far this year, and I'm sure by writing this post, I'll get some angry tweets and messages as a result.
But hey, I am here to read and follow the charts, not make people feel good about their existing long positions.
SPDR Gold Trust (GLD (NYSE:GLD)) of late has seen a fairly heavy sell-off from the $125 area, with little bounce on the daily chart. Today is no different - down over 2% in all.
However, today's price action is the least of the bull's worries, as there is a massive topping pattern forming on GLD that is infamously termed a broadening top or megaphone pattern.
So here's the deal. If GLD can hold the $115 level, all is well. But break below it, and that is where things get ugly and nasty - with a potential target of $105.
