Saturday, 12 December 2015

Gold forming Head & Shoulders bottom at trend line support

Daily chart shows that Gold may be forming a bullish inverse Head and Shoulders at trend line support. Gold must stay above 1060 to keep the H&S pattern alive. A rally through the neckline around 1090 would confirm the pattern and provide an initial target around 1130.

Weekly chart shows that the recent low coincides with the lower parallel of a four year old channel. A rally could eventually target the mid channel lines around 1250.