Gold Is Trying To Unfold An iH&S Formation
Admirals | Sep 05, 2013 08:51AM ET
Good times for the buyers of Gold may have ended. The upswing started at the end of June and lasted till the end of August when buyers failed to break the area around $1420 USD/oz which was an important level in May and the first half of June. Currently, we can see a bearish retracement which is forming a very dangerous iH&S formation. Thursday morning brings us a neck line breakout, which technically triggers the sell signal from the iH&S formation. The minimum target for this movement is located near the $1317 USD/oz support, so there is still a lot of space for sellers to unfold a downswing.
The only chance for buyers is to defend the $1380 USD/oz and deny the bearish breakout by coming back above the neck line and drawing the long lower wick of the latest candle. Other than that, we cannot see any possible signs of denying the bearish movement that started at the end of August.
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