Continuation H&S pattern would have target of $2,042
The daily Gold market chart has been forming a possible continuation inverted H&S pattern. If this interpretation is correct the only question is if the right shoulder low has been established or if further right shoulder construction is needed.
The decline on Thursday appeared to wash out weak longs. An advance and close above the Mar. 21 high would complete a candlestick hikkake buy signal. This would give some credance to the change a right shoulder low is in place.
A decisive close above the Feb. 28 high is required to complete this H&S pattern and establish a target at $2,042.
Go here to read the rest of the analysis and see some nice charts.
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I’m still waiting to read some cogent fundamental analysis in favor of higher gold prices
http://www.caseyresearch.com/gsd/home
It gets downright interesting about halfway through.
http://www.fool.com/investing/general/2012/03/23/currency-intervention-and-the-leap-year-gold-mass.aspx
The comments section is worth a read, Chivo.
I hate the constant pumping of what is obviously ABT through the fool ad of “final Steve jobs vendetta crap that I keep seeing.
AMT*