GLD Watch 01/12/2009

We finally had a big decline in Gold! I was beginning to doubt myself. But as I posted here in GLD Watch 01/07, we are now testing 80 and the next support levels are ~70 and ~65. I wouldn't be surprised if the action was choppy in the 70-85 range for the next few months as the buying base consolidates. I'm not a daytrader, but I'm looking for a good entry point where the daily and weekly charts say "Buy" so I can put some cash to work.




If we continue the decline, the daily chart suggests support at 70-72. Or, we'll snap back from the 78-80 level, which would probably be very bullish, but I'm too scared to chase that. Actually, any short term low above 70 would be a higher low, which I believe is a bullish indicator.