Well, it sure looks like a Head and Shoulders pattern breakdown to me! Either that or so-called 'Technical Analysis' ('TA') is just aload of waving your hands about psychobabble nonsense, so that 'technicians' can sell subscriptions for worthless investment advice that is denied as being investment advice, (i.e. the kind that often comes with the typical disclaimer saying, "In no way is this investment advice ... we are not liable for any trading losses as a result of this advice that isn't advice ... BUY! No, SELL, SELL! No, BUY! Buy my newsletter! That will be $500 a year, thank you. Cheque, PayPal, Credit card or Bankwire are fine.")
See the excellent and free gold futures charts submitted by Dan Norcini (better than many of those from people who charge loads) at http://www.jsmineset.com/ - downloadable as Acrobat Reader .pdf files on most days. (The bigger writing on the snapshots below was added by me.)
A couple of days ago, prepare for swan dive:
One day ago, swan dive duly arriveth:
The daily spot gold '$GOLD' stockcharts chart looks slightly less alarming but is a neckline breakdown by any standards, on an intraday and closing basis:
If that ain't a head & shoulders, then there ain't no such thing as a Head and Shoulders, except for the shampoo of a similar name.
Of course, then the 'debate' will be: 'By how much?' 'When is a breakdown not a breakdown?' and all that similar nonsense that we always here when 'Technical Analysis' doesn't work and the expensive hired tealeaf readers get it wrong.
It's interesting that the $844 and $861 possible targets are near to two recent lows (support areas) in the above chart.
For development of this, see the current chart, constantly updated at http://stockcharts.com/charts/gallery.html?%24gold!
It will be interesting to see if this formation gets negated next week or if we do get a continuation of the breakdown to the $844-861 target and another chance for any interested buyers to purchase the yellow metal in the $850 area.
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