This powerful and inverted "head & shoulders" pattern has been forming since beginning of 2008. This pattern is telling us that last year decline after the Lehman collapse was a classic selling climax. Gold was dumped in the rush by hedge funds and others to de-leverage. That selling led to a bottom that was marked by emotion, not logic. Gold will climb above $1,000 this year and stay there to validate "head & shoulders" pattern. The moment is rapidly approaching.
Eldorado Gold Corp reported a second-quarter profit that beat market estimates, helped by higher production, and reiterated its production outlook for the full year. I think EGO is at good position to benefit from the imminent rising price of Gold.
Disclosure: Long EGO
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