"Gold has worked down from Alexander's time... When something holds good for two thousand years I do not believe it can be so because of prejudice or mistaken theory."
– Bernard Baruch
So far, everything’s on track as far as GLD (and Gold) is concerned.
On March 27, I identified a potential Inv H&S and said
“GLD is coiling into a tight contraction as MAs are narrowing. There also is the possibility of an Inv H&S developing, which, if successful, measures to 120+”
On April 10, I followed up with
“A break below the neckline (or below 110) is a strong warning. A break below 105 will make the situation look negative”
GLD has so far tested the neckline and bounced
This is a really good looking chart. All the targets of March 27 post are still in play.
Media seems to always find a reason why Gold is rising (or falling). Sometimes it is USD, sometimes it is Greece, sometimes inflation, sometimes stagflation – we all know how useful media interpretation is.
All I can tell you is that gold is money, and in that, it is different than the money and the moneyness that bankers (public, private) create.
For every ounce of gold, there are tons of experts. I shall ignore them all, and pay attention to what the price does.
If the move is for real, the neckline should hold.
If things get really rough, the right shoulder should hold or technicals may turn negative.
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