Tuesday, February 15, 2011

Gold: Looks like it is GAME ON

Overnight gold broke out of what appears to me to be the bullish inverted head and shoulders pattern on this 4 hour chart.  This means we have a higher high again today for the current daily cycle, strongly in favor of being a right translated and bullish daily cycle, also strongly in favor of the notion that 1307 was the bottom of the previous intermediate cycle, and strongly suggesting that it is now GAME ON for gold.
A common behavior of head and shoulders patterns is to break out, then come back one last time to retest the neck line price area - which appears to be around 1365.  But I certainly will not be holding my breath for that to happen.  This looks really really good.
Silver, btw, is presently about 40 cents below its all time high and looking very strong.  Palladium has come within about 30 cents of its all time high this morning.  Platinum and copper, like gold, are still well off their all time highs.

1 comment:

  1. You commented on how gold looked like its making the right shoulder on the inverted H&S a couple post ago in the comments and I just gotta say great call! Right translated and inverted H&S, GAME On! Really enjoy reading the blog!