Gold And Silver Gap Down Lower
Wow, what a difference a day makes. As of yesterday it appeared to me that the metals were about to head higher, but that short term bullish outlook was quickly negated today when gold and silver gapped down lower early this morning. I should have realized that if I was bullish on the dollar, that that would most likely put pressure on the metals which we saw happen today in a big way.
Looking at the daily chart you can see that gold is forming what looks to me as a head and shoulders top. I know the formation is somewhat lopsided but maybe after a few drinks you'll see what I'm seeing. Seriously though, it appears at the very least gold is making its first lower high which could spell trouble if the trendline is violated.
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3 comments:
Kevin
What would be the target of that H and S?
thanks
I don't think you're alone. I see a massive H&S as well on GLD. If you punch up bellwether stocks such as ABX, GG and NEM, these stocks (which tend to front-run the metal price) closed below their uptrending support lines today. Hence, the odds that GLD will plough lower, below it's H&S neckline are extremely high. A measured move break below support on GLD makes it eligible for a move to 92.50. That translates, I believe, to a gold price of about 950-975.
nice post. thanks.
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