The H&S Pattern is not really valid because the
far right shoulder at 900 is slightly higher than
the shoulder just to the right of it.
It is possible for gold to retrace from this point,
but it is more likely that it will break up and out
of the down flag that has formed.
Gold has blown through all the previous highs and
is poised to move solidly into the 900s.
But every time I have been completely convinced
that gold was going to do something...
IT WENT THE OTHER DIRECTION...HARD!
So be cautious and don't ever forget that the guv'mint
will do ANYTHING at this point to keep from
admitting WE ARE BROKE...and...THE DOLLAR IS DEAD!
You could see a hard hit to gold in the short term, but
that will only give you another opportunity to buy at
a lower price..