It’s official, gold has given back slightly more than 50% of its entire 1999-2011 bull market ascent from $253.20/oz to $1923.70/oz:
Technicians have been quick to point to the breakdown from the 2-year descending triangle with a measured move target below $1,000/oz. Credit Suisse even sharpened its pencil and conjured up a $956/oz downside target.
Additional downside below Sunday night’s $1,080 low certainly seems quite logical. However, the consensus is now so clearly unanimous that more downside lies ahead for gold that we should strongly consider the possibility that the 50% retracement level of the 1999-2011 bull market might hold up as support for a while.
Another interesting anecdote comes in the form of StockTwits message sentiment, StockTwits users (retail traders) have never been more bearish on the yellow metal:
