The enclosed chart shows the weekly longer term chart of Gold that appears to be attempting a major upside breakout! The inverted head and shoulders pattern target objective of this bread out is the distance from the bottom of the upside down head to the neckline which is specifically $1008.60 to $681.00. That difference is $327.60. Add $327.60 to the neckline level of $1008.60 and you get a price target for this pattern of $1336.20. This should be a three to six month target based on the recent past price performance. That is just the price target for this particular pattern and may not be anywhere close to the longer term secular target price. I don’t have any measurements for that longer term price objective yet.

Sep. 16, 2009
David Hall