Gold and Gold Miners

Gold had a big fall yesterday taking the gold miners along-with it.

Gold

Looking at GLD which is the Spider Gold shares and tracks the price of gold, we can see it is down -5.5% over the last 1 month.

The 10-day moving average is below the 20-day and the price itself is below both those indicators.

The longer-term indicators are also quite unfavorable. The price is below both the 50-day and the 200-day moving averages and the 50-day is most definitely cross below the 200-day within a day or two.

Looking at the support and resistance levels over a 1-year chart, we can see that 2 of the support lines have been breached already.

The only thing that would make me wait here is the fact that GLD has been down 8 straight trading days. So, it may be ripe for a pullback.

Gold Miners

Gold Miners - GDX - are in a worse situation. The longer-term indicators are strongly bearish with the 50-day crossing below the 200-day moving average.

The short-term indicators are bad as well.

The 1-year chart also shows there is no support line at all. So, the GDX could continue to have a free fall.

Conclusion

Both GLD and GDX are heavily beaten up but continue to look weak. I will press GDX at every positive day through short-term options.