Gold Can Do This Correction Standing on its Head (and Shoulders)

The daily futures (click charts for full, clearer view) show a pullback from resistance and a minor (don’t let the hype freaks sure to come out of hiding fool you with predictions of terror and doom) H&S. Gold has lost the SMA 50 but both it and the SMA 200 are trending up. It’s fine. The pattern measures to the next support area at 1425-1435.

gold

The weekly chart clarifies why the 1378 area is major (as in breakout) support. With the daily SMA 200 above rising to meet it that makes it even more so.

gold

The monthly chart reminds us that the mid-high 1500s was very clear and significant resistance and probably always was going to halt the advance.

So as the rationale and excuses pile up, those who’ve laid in wait to raise their bearish voices again come out of the woodwork and the mainstream media guide you the wrong way in the coming weeks, you’d probably do well to filter it all and remember that gold and especially the miners needed to cool down. It’s all normal.

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