Remain Blessed Mehmood Hussain Syed www.trade-in-harmony.blogspot.com The Forecasting of Stock and Commodity Markets

I just posted an update on the Gold Commodity Markets on my blog site. Please review in details here.

Mar 17, 2010

Gold Market Outlook 03-17-10

Commence with Gratitude to The Most Benevolent, The Ultimate Knower for the Blessings and ability to share.

I just returned from a life transforming trip from New York. I am grateful to The Most Gracious for such a stupendous bestowment.

I just have look at the Gold Commodity Market and SPDR Gold Trust (GLD). It is probably developing a chart patterns, that foretells intermediate downside in gold prices.

The head and shoulders pattern is usually considered as a reversal pattern and it is frequently seen in uptrend. It is also most dependable when found in an uptrend as well. The market begins to slow down and the supply and demand are generally regarded in balance. Sellers come in at the (left shoulder) highs and the downside is prodded (starting a neckline.) Buyers shortly return to the market and push through to new highs (and thus forming a head.) Nevertheless, after the new highs, the downside price is probed again (and thus continuing neckline.) Cautious buying re-surfaces and the market rallies once more, but fails to take out the prior high. (This lower swing high is regarded as the right shoulder.) Buyers give up and the market tests the downside again. The trend-line for this pattern should be drawn from the beginning neckline to the continuing neckline. Volume has a great importance in the head and shoulders pattern than other patterns. Volume usually increases as the price moves higher on the left shoulder. Though, the head is formed on reduced volume indicating the buyers are not as forceful as they were earlier in the uptrend. The last rallying attempts to form the right shoulder on even lighter volume, indicating that the buying has been exhausted. Then, new selling ensues. The pattern is complete when the market breaks the neckline. Volume should increase on the breakout of the trend-line.

Remain Blessed Mehmood Hussain Syed www.trade-in-harmony.blogspot.com The Forecasting of Stock and Commodity Markets

Remain Blessed Mehmood Hussain Syed www.trade-in-harmony.blogspot.com The Forecasting of Stock and Commodity Markets