While I do think it's severly oversold at this stage and due a rebound the recent break of support at $ 3.20 (see chart below) has seen a significant sell - off as one might expect when a strong support level is broken. (financialtrading.com)
Although some aggressive traders like to sell short the actual break of support, rather than waiting for a bounce, we have learned over the years that such an entry in a short position can be risky because false breakdowns occur rather frequently. (morpheustrading.com)
If a convincing break of support occurs, we will then look to sell short $ GLD (or buy $ DZZ) on a subsequent bounce into new resistance of that prior support level. (morpheustrading.com)