Gold Price Forming a ‘Shooting Star’ Pattern

Gold Price Forming a ‘Shooting Star’ Pattern

$XAU, $GLD

Gold markets started to rally last week, but struggled going higher.

And in the action is forming a Shooting Star, thus suggesting that Gold is going to continue South towards its support at 1280 oz.

If Gold break below 1280, the market move South towards 1250, and then 1200. This is interesting considering that Gold had been strong for so long, but now it it looks weakened.

If Gold breaks above the Top of the weekly candle stick that would be a very Bullish sign for Gold Bugs.

But, with this pattern that does not look very likely based upon the price action last week.

This may be the week that the sentiment changed.

Another But, if Gold breaks to the Northside then is will move higher to the 1350 again in due course.

So, if you are Bullish Gold longer-term you probably need to be buying physical Gold as anything levered will be risky.

Note: In technical analysis, a shooting star is interpreted as a type of reversal pattern presaging a falling price. The Shooting Star looks exactly the same as the Inverted Hammer, but instead of being found in a downtrend it is found in an uptrend and thus has different implications.

Have a terrific week

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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