I have reset my contingent stop price on $XAU to 199.25, based on the prior high set on January 14, 2008 (which, to my eyes, is the peak of the left shoulder).
What's happening now with $XAU reminds me of a similar pattern around this time of year in 2006.
Take a look at how the right shoulder is complex – – it has two peaks, the second a little higher than the first. Now take a look at the current price action.
It's not like there's a giant plunge in store, but it seems there's a reasonable probability of a 25-30 point drop from these levels.
