This is an equal weight gold stock ETF and it shows the same pattern but pointing down, none of this sideways pattern where we can get fooled into thinking a big bull market is just around the corner.We still end up with a sideways pointing wedge and it has been long overdue to break out. Break out in which direction? This morning gold stocks have already turned down,so I will not be surprise that ZGD will slice through the bottom wedge trend line. ZGD hit a new bear market low in early 2018 which many of the other ETFs did not do.
I’m dealing with many of these 4th wave scenarios and if I’m right this ETF has much more to fall and will even set new record lows. Another double bottom could fool us with an early bottom,whichmay take all summer to play out. After all we have to respect summer highs like 2016!