Gold is correcting right now and appears to be forming a giant head and shoulders pattern. Obviously the pattern won’t be complete until it breaks through the neckline, but now is the time to watch for a decent entry once this stock turns up. 2 indicators I am watching closely is how the RSI reacts when it reaches the bottom trendline. Being touched 3 times it’s fairly solid and a break below it could wreck this whole pattern. The other indicator to watch is the ADX, as it’s reaching levels that indicate a big move is coming. You can see the last time the ADX was in the low teens back in Sept ‘07, it launched into a big move higher, which would be in-line with the bullish head and shoulders scenario.
