"Gold looks awful, having broken down from a Head-and-Shoulders top on Friday. It should now drop down into the support zone in the $570 - $580 area shown on the chart. However, with the dollar now short-term overbought following its sparkling performance last week, and prone to react/consolidate, we should not be surprised to see gold rally back to the underside of the H&S top, i.e. to the $612 - $615 area, probably early in the coming week, which would be viewed as an opportunity to short it, with a close stop above the neckline."
Clive Maund, 01/08/07, 321Gold, "Bottom Pickers Beware"
"Gold is looking technically stronger than it has done for the past 16 months. It would have escaped the notice of many that it broke out last week from a little-known technical pattern known as 3-arc Fan Correction. This pattern was not detected earlier because it is rather rare, and instead attempts were made to define the action in gold since last May as some kind of triangle, which could, of course, be bearish. However, a 3-arc Fan was clearly identified in the Streettracks chart last week on www.clivemaund.com, prompting a re-examination of the gold chart, whereupon it became evident that a similar pattern exists in gold. This is very important, because it largely sweeps away lingering doubts about where gold is headed. This is because these patterns are very bullish, and seldom break down."
Clive Maund, 01/28/07, SafeHaven, "Sectorwide buy alert"
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