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Head and shoulders
Am I delusional or is Gold in a position to complete a head and shoulders pattern on the historical chart?..with a slight pullback.
edited March 2017
I don't usually go for patterns, especially such large ones, but I think you are right.
On the other hand, $GOLD came into the Dec 2015 low on decreasing volume, indicating a lack of interest in going lower, and buyers responded pretty strongly to that weakness in Jan and Feb 2016, suggesting support is there. Higher prices around 1250 in Feb 2016 brought in big selling. Buyers fought through it to get to 1350 is in July 2016, but then lost interest. Sellers picked up on that, but the reaction was mild until the Nov 2016 election brought capitulation - a big drop on huge volume. But in Dec 2016 there was no seller follow though - a small loss on lower volume. That brought buyers back in again on strong volume.
So, there still seems to be support at lower prices, but sellers seem to want to put a cap on higher prices. That suggests a range for a while. But a break below 1050 on strong volume would strongly suggest much lower prices, as your head shoulders analysis forecasts.
Thanks Mark, I will watch the supports...so many influences on gold right now a break in either direction could be dramatic.
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