Friday, 16 August 2013

Reverse Heads and Shoulders abundant in gold. 2013-08-16

Right, so on Friday I thought there might be a pullback in gold and a bounce in the stock markets.

However, the bounces in the conventional US stock markets were anaemic to say the least and gold was fairly strong and actually closed a little higher, perhaps turning its latest resistance line into support.

Stock markets: Dow 30 and S&P 500:

Gold has an abundance of reverse head and shoulders formations. I have marked in 11 of them:

Note the orange neckline of number 8. The neckline has broken out to the upside and has backtested it as support just before the upmove at the end of the week.

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