Monday, 16 July 2012

Two bullish charts? Try these for size! 2012-07-16

OK, so I am bearish today. Sometimes I think technical analysis as it is called could be a load of old crap.

Here are two charts that do not paint a pretty picture for the precious metals:


However, the signs look poor on the charts for a gold rally. There is an ominous potential head and shoulders pattern that has already broken down from the neckline and tested resistance and been repelled. The the inverse thrade, the US dollar is whoing a lovely cup shaped bottom pattern after achieveing a head and shoulders target last year of about 73. The new inverted head and shoulders pattern has broken out of the necking and back tested it and confirmed it.

Looks like the dollar could be going to 90 and gold to $1300 if these patterns are correct.

The backdrop is a weak Euro in constant ongoing semi-crisis mode.