Wednesday, September 12, 2012

Gold Weekly Inverted Head & Shoulders Pattern

Gold $GC_F futures weekly chart has been testing its Key Reference Area (3) times since putting in 1923.70 highs from September of last year. In doing so, these (3) tests have created a large inverse head and shoulders bottoming pattern as the head was defended of may this year with a right shoulder low of 1526.70. After putting in a right shoulder low, this future made a move north to 1642.40 finding its 1st resistance. After finding the 1526.70 high/low saw a double bottom re-test in late June. Then a few months of consolidation this future was ready to breakout of its symmetrical triangle formation which targets 1758.10 which was a few points away from completing its short term upside move today. Note: smaller time-frames today are turning negative as the last 4 trading weeks look a little long in the tooth and vertical. Any pullback into the key 1642.40 area "high" I anticipate responsive buyers to be active (what was resistance now = support) , this also would be a healthy retracement needed to propel this future through the neckline and begin attacking its extremes highs of 1923.70 and then on the complete its ultimate objective of 2084.90

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