GOLDBUGS AMEX Goldbugs Index (GOLD)

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The Ord Oracle
By Tim Ord

* February 8, 2017

Head And Shoulders

• SPX Monitoring purposes; Covered short SPX 1/31/17 at 2278.87 =.09% gain; Short on 1/30/17 at 2280.90
• Monitoring purposes Gold: Long GDX on 12/28/16 at 20.25.
• Long Term Trend monitor purposes: Short SPX on 1/13/16 at 1890.28



Above is the monthly XAU chart. XAU form the August 2016 to the December low produced a 50% retracement of the previous rally that started January 2016. XAU found support near the 75 range and is now in the rally mode. The next obvious resistance is the August high near 110 which for now is our upside target and an area where market may stall. The pattern that appears to be forming is a Head and Shoulders bottom pattern. This pattern has symmetry both in time and price. If one measures in time from Head to the start of the left Shoulder it should be near equal in time from Head to the end of the Right Shoulder (Red vertical lines) which comes in early 2018. So this year could end up sideways (but with big swings) creating the Right Shoulder. If this potential Head and Shoulders pattern places out then Next year could be the banner year for gold stocks as the Head and Shoulders pattern breakout would come next year. The top window is the monthly RSI for the XAU. As long as the Monthly RSI stays above 50 range, than bull market is present. Long GDX on 12/28/16 at 20.25.

http://www.talkmarkets.com/content/us-markets/head-and-shoulders?post=121643

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