Gold has made double top, chart pattern like this says...

ambro51

that the next move could be very down......


or, or may be sharply up....
but historically it has been down more than up, though I just logically cannot see this at this point in time.

cohodk

Double tops are not double tops until the neck line is broken. That would mean a break of the 700 level. In a true double top you can project a bottom by measuring the distance from the neck to the top of the head. In that case 700 to 1000 or $300. Subtract 300 from the neck and you arrive at $400 as a target. A true double top is also very symmetrical.

COINB0Y

cohodk

roadrunner

A perfect cup and handle formation started at midnight today and ending the cup around 8:30 am. EST. Let's see if this is not a bullish sign. The handle at $965-$967 has alreadly been repelled once as is typical. Next should be a rise above the handle, then a return, then a larger rise up.....probably into the higher 970's or 980's. I don't recall seeing such a perfectly formed cup in a short 8 hour period.

This would be a very bullish signal to return to challenge interim highs again. You don't normally see this formation during a correcting phase. The smackdown that occured yesterday at this time was gone. Kind of makes you wonder if that wasn't all for show yesterday to support the state of the Union address.

roadrunner

cohodk

I might add, but not willingly, that we are at the neck line of a potential double top on the SP-500. So far support has held. And you had better pray that it does, for............well you can do the measurement yourself.

Cnitas

It does make you wonder. The DOW is already down 150 again this morning.
So much for the rally.

roadrunner

There's no "wonder" about it. Bernanke said the words people wanted to hear yesterday such as a recovery by fall, more oversight on the banks, etc. Based on his previous track record of having the sub-prime "under control," you can just assume the opposite of what he says. To help Ben along, the PPT along with their big bank cohorts, goosed the stock markets and sold down silver and gold. It got them the one-day rally they needed. Whether it lasts further into the week remains to be seen. Yesterday people demanded risk, today they are tossing it out the window again. Considering that monthly gold options expired yesterday, it was the best timing for shorts to conduct a smack down - and be patriotic as well. I'm sure the Treasury/PPT were most appreciative for the help.

And the cup and handle formation broke upwards to $977 as expected. The majority, including most gold bugs are looking for a continued correction in the gold price down to lower $900's or into the $800's. So a contrarian would say that's exactly what's not going to happen. Kitco has once again "locked up" their short term gold charts since gold was $963. They seem to do this anytime gold starts to get a head of steam. Another bullish indicator. I'll let you know when their computers lock up on a down move.....don't hold your breath.

roadrunner

ProofCollection

It would be extremely bullish for this parttern to re-test $900 or $930. Look at the pattern since the move started in November. Rise up in early December, bottom around Dec 5. Rise up to Dec 29, then pull back on Jan 15. Rise up to Feb 23. Now we need a pullback.

roadrunner

I do concede. Would still like to know who did all the selling, esp in gold stocks considering that 2/3 of most gold miners are owned by large institutions. I didn't see those guys dumping. Even some of the major banks such as Wells Fargo were buying more in the past few sessions.

roadrunner

Bear

Cups, handles, pennants,double top, double bottom

head and shoulders. What is next , pie plate, table, chair

fry pan and my favorite , pig snout.

cohodk

<< <i>Cups, handles, pennants,double top, double bottom

head and shoulders. What is next , pie plate, table, chair

fry pan and my favorite , pig snout. >>



More like doji, flying dragons, hanging men, and shooting stars.

streeter

If anybody cares, the economy in California is nearly in a free fall. And soon we get to pay more taxes retroactively. My state/federal top marginal liabilities not including things like permit fees--will be over 60% shortly.

Kind of reminds me why my dad decided that he had had enough in the late 70's.

Why would anyone work when you give 50%+ to Sacramento and DC?

cohodk

Why would anyone work when you give 50%+ to Sacramento and DC?

Because you have to. Just ask the Europeans.

percyb

wherez da chrt?

ed. to add that the gold boat is leaning to one side....and dat aint good.