Tuesday, 29 July 2008

Head & Shoulders. So much for $8000+ gold! 2008-07-29

So much for $8000+ gold. We will have to wait. We are struggling to hold on to $900 right now!

Here is trader Dan Norcini's latest gold chart (short term):


It shows to me what looks like a classic Head & Shoulders with a price target of ... $844 on an intraday basis:
top-neckline = $990-$917=$73, so the measured move is $917-$73=$844.

Oops! It looks like a chart just ripe to be 'painted' lower by those who wish to imply that the economy and inflation are under control by bashing the gold price.

However on the daily chart, the right shoulder is not yet formed:


Maybe we need to wait a little while before making any conclusions.

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