What Is Gold Telling Simple Traders?

I’ve written extensively about GLD starting as far back as April 2013 when price broke down thru the rising trendline on its way to destroying the horizontal support line around $148.50.   I wrote about the ETF most recently in January of this year.  Following a double bottom on the daily chart in December 2013/January 2014, price experienced a nice run higher into mid March before rolling over.  Since then it has experienced a drop… a drift to the side and finally, as of this week, what looks to be a more decisive move to the downside below the lows of that sideways action.

simple trading GLD

So what now?

The down arrow inside the rectangle of price action shows the path of least resistance.  We shall see if price does indeed follow that path (the Magnet Setup suggests that it will).  There is a clear line of support at around the $115 level so watch that area for renewed buy interest should we begin to push lower in earnest.