Sunday, February 27, 2011

GOLD Daily Chart H&S Potential Island Reversal

Gold an emotional ride and always very news driven. The H&S shown by the red lines failed at 1340-ish but the failure was short lived as Middle East turmoil bounced gold back above the neckline and up towards recent highs. The last four days form a potential island top, should it play out, gold will skip back down to sub 1388. If the current price holds, then the potential H&S shown by the blue lines is in play as well as the red line H&S. This presents two targets, 1260 and 1220.

Gold bulls will gain strength if further upside levels are attained and also if the 20 MA regains the 50 MA. Simply watch to see which scenario plays out early this week. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.

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