Gold Resting Before Push To 1500 Or About To Confirm Head & Shoulders Top?

Posted By Tate Dwinnell |  Subscribe in a reader | Comment 1

It’s been awhile since I provide an update on gold, so I thought now would be a good time to take another look at the yellow stuff.  In my last report on gold the GLD was inching closer to $130 and I thought that level would present a very difficult level and be an area where gold would stage a correction. 

A few things to point out.  For one, gold didn’t really correct, but rather digested overbought conditions with more of a sideways move (actually head and shoulders pattern) and remains in a fairly tight range above the $130 level, so certainly gold has held its own up here and could be poised for a move to the next major resistance level up around the $150 level (another 10% or so from current levels).

Before a move like that can take place, gold will need to move out of a possible head and shoulders top formation which is still a possibility, but hasn’t been confirmed.  We’ll need a couple healthy moves down in gold for that to happen.  Adam Hewison of is basically on the same page.  He just did a quick video highlighting the current action in gold and will conduct a webinar tomorrow.  Watch the video and sign up for the webinar by clicking on the video image below.


To round out this update on gold, I wanted to bring in the analysis of David Banister of who uses Elliot Wave Theory.  Despite the variance in the tools used to analyst the current price action in gold, I think we can all agree… the price action in gold remains in a strong uptrend.  While there are vulnerabilities that could play out, the odds favor a move to the next level of resistance which I mentioned as around the $150 level for the GLD.  David sees resistance around the same area and targets a move in price of gold to the $1480 – $1525 level.

Get David’s full analysis here

More on this topic (What's this?)
Has Gold & Silver Finally Bottomed?
Gold Price Gravitating Lower Towards $1000
Read more on Gold at Wikinvest

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Comments on Gold Resting Before Push To 1500 Or About To Confirm Head & Shoulders Top? »

April 10, 2012

paul fernandes @ 7:10 am

Why is gold stocks doing so badly, when will it start going up