Tanalys

Gold Near Term Topping Pattern of Interest

60 Minute Bars

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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Commodity Analysis: Wrote last week that “the implications are for a new low and perhaps a test of the 2011 low at 1307.45 before a reprieve from selling and move back towards 1404-1430 (which could also be a 4th wave rally). Bottom line, the strongest part of the decline is probably over and declines from here will be in stair-step fashion (series of 4th and 5th waves).” Gold’s didn’t quite make a new low, stopping at 1336.15 on Thursday before embarking on the larger rally. Expect resistance for this rally at 1459. A short term head and shoulders pattern may be unfolding.

Commodity Trading Strategy: Order to short 1459 with a 1500 stop and target 1310. Entry might be lowered if mentioned head and shoulders pattern unfolds.

LEVELS: 1322 1367 1392 1427 1459 1495

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