Monday, 7 October 2013

Head and shoulders in gold and gold at Point and Figure strong resistance. Posted 2013-10-07 1808 BST

Bearish Head and shoulders in gold with the head at $1434, target is about $1180, same as the 28th June low:

Gold at Point and Figure strong resistanc., courtesy of free charting gallery Vew which is an excellent service:

As I commented on just now:

It’s THE THIN RED LINE (or maybe the thick red line).
Point and Figure chart (very old fashioned, traditional type). Point at it and then go figure!
It shows the top at $1800 in September 2012 and the subsequent bear market in gold.

The price is now completely capped by a 45 degree downtrend line and has been since lkast August 2013 (about 5-6 weeks) since price had a high at $1434. Gold is so clearly AT KEY RESISTACE on thisa line and the level or the resistance is falling.
Either it’s going down or it’s going up, folks! ;-)

I would think that to break out above this line would be VERY BULLISH, if it happens. Of course, it has to happen sometime because eventually this line will cross zero.

$1330 is needed to breach the line, $1340 to break above it.

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