MASSIVE HEAD & SHOULDERS TOP MATURING IN THE DOLLAR: BREAKDOWN WILL LAUNCH GOLD THROUGH $1800
JANUARY 27, 2013
by Morris Hubbartt:
The dollar’s huge head and shoulders top formation is maturing. The target is 72. It will be activated when the dollar closes under 78, for two consecutive days. A breakdown under 78 should be accompanied by gold breaking above $1800.
Over time, markets oscillate from undervaluation to overvaluation. The chart below demonstrates how gold stocks go from one extreme to the other, forming a channel that can be bought and sold.
In terms of undervaluation, gold stocks are now stretched to the point of challenging the 2008 panic low!