IS GOLD SETTING ITSELF UP FOR A BIG TARGET?

IS GOLD SETTING ITSELF UP FOR A BIG TARGET?

As mentioned in the last post about gold the 1^st head and shoulder target of 1234 was met and then gold resisted at 1250 $/oz , now the target for the bigger head n shoulder patter Is pending the target being 1300$/oz.

Between all this gold showed a healthy retracement to supports and tested them successfully so the supports now lie at 1160$ and then at 1140$.

Interestingly since December 2009 gold seems to be forming a sort of cup n handle pattern whose target could be 1410$/oz.

But let’s not get carried away with all those big targets and instead take it step by step

The first resistance now is at 1250 $ above which the target of 1300$ will become very real and above that the target of 1410$/oz gets opened up, all this will take considerable amount of time with lots of up n down movement based on the news flow about Greece etc . The important levels to watch are

1>     1160 for 1^st sign of weaknesses.

2>     1140-1127 as 1^st sign of a reversal.

3>     1250 as a key resistance above which gold will acquire new momentum.

4>     1300 will prove to b e a huge resistance as it is a target of a significant pattern.

5>     1410 the ultimate target of a cup n handle pattern.