Head & Shoulder on Gold Daily Chart

Discussion in 'Metal Futures' started by DonCorleone, May 2, 2008.

  1. I don't trade futures as I'm mainly on the equity side, but I couldn't help but notice what seems to be a H&S formation on the daily chart. It seems to be coming down to next support, 800-850 area. But once that goes...

    Use the chart to your advantage. Good luck.
     
  2. I still think however in order for this to play out ( $800 and below )
    crude oil has to go back to say $90 and the Euro drops
    to say 1.45 per USD

    a tough task indeed for the gold bears lies ahead
     
  3. Yes, tough indeed for gold bears...

    FWIW, Euro is approaching its support level around 1.53. That needs to be broken in order to reach the next support around 1.49. But if it bounces off of 1.53 and goes higher, US$ will indeed be screwed. However, if you look at USD/CHF and USD/JPY, US$ seems to be bouncing off of the lows for now.

    CL is still strong. I agree with you, Seth. It needs to break below $100 to see add'l downside.

    But as they say, never say never. Who knew gold would hit above $1000 5 years ago? As they say, what goes up must come down...

    :cool:

    Good luck all.
     
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  4. Here's the CL chart with support levels drawn.
     
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  5. gold and silver are in the plus column tonight in Asian trade

    some small time resistance levels have been taken out so far

    in the spot market I see $863.20 as the high with GLD the ETF proxy having a theoretical value of $65.14
    with June Futures approx $864 last