Five year gold

I feel like Artie Johnson doing that old Laugh in skit.  You know, the one with the German spy in the bushes, who rises up and says "Very eenterestink!"  I can't find it on YouTube, but I did find this one that was done as a Sesame Street video about the letter "q".



But I digress. I was looking at this webpage and found this and had that same feeling--- Very interesting!

This is an inverse head and shoulders pattern.  Notice that I've drawn three horizontal lines on the pic.  Going from left to right, the first line is about equal distance between 750 and 1000.  The second line is just below 750, and the third line is about even up with the first line.  I drew a fourth line at the 1000 mark which shows a break out to new highs.  The first and the third lines represent the "shoulders" and the head is in the middle, just like in anatomy.  In this case, think of the man as being upside down.

I've seen this chart in the bearish scenario, with the rightside up head and shoulders.  That stock went into decline and never recovered.  The head and shoulders pattern is very significant.  The inverse could well be as well.  In this case, since it is inverse to the bearish head and shoulders, this inverse case is very bullish.  It looks like the breakout was back in late 2009.  It is about an year and a half old.

For your information, I saw a real head and shoulders on the Dow back in 2008.  It is close to being invalidated by this latest rally.  However, if this rally fails, for any reason, it could be the breakout DOWNWARD.  Be very, very careful about buying stocks.  But gold is not in danger.  It's chart is not in a critical point at this time.