Three Different Head & Shoulders – Gold, Silver, and Dollar
Chris Vermeulen, August 20th, 2009
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Everyone is talking about gold shooting to the moon because of the massive reverse head & shoulders pattern forming, not to mention the economy isn't as good as some of us would like it to beJ. I put together this quick report to show the bearish side of things for once.
Bearish Points for Gold & Silver:
- Silver looks to be forming a H&S pattern
- Gold made a new high in March and quickly sold off
- Gold's neckline is angled up which makes for a weaker breakout if it occurs
- The US Dollar looks ready for big rally.
SLV ETF - Weekly Chart
Silver is a great performer but we may have to start looking at shorting precious metals in the coming months if prices start breaking down.
