NCM from an inverted head and shoulders perspective: Left shoulder found support around $26 with a time period to complete of 4 months. $26 was the important break out back on the 9th Dec 08 and price has not returned to this level since. Is also 38% Fib from Nov 01 to March 08. Head is nice and symmetrical with a low of $17 (This is a 62% Fib retracement from Nov 01 to March 08) Right shoulder found support around $28 and so far has taken about 5 months to complete . Both shoulders should usually be equidistant in both price and time. As the right shoulder has so far taken an extra month to evolve, I’m not sure if this has any negative impact on the success of the pattern. So where to from here? Do we see the $34 neckline level hit soon? Does it congest then break out towards a target of around $50 at some stage? Or do we hit $34 and pullback, hopefully no further than $31.50 ( which was the rising window created on the 21st May and also the important 62% Fib from March 08 high to Oct 08 low) Or does the pattern fail completely …obviously GOLD would need to take a hammering as well. GOLD is showing momentum, with some consistent rising on the ADX lately and Friday’s close saw multi month highs. Will it be different this time round and crack $1,000 on the 3rd attempt or will the big boys find away to smack it back down again? Above $34 could be a good price to lock in profits as this level is at the top end of the trading range and also the neckline. But then I don’t wanna be left behind if GOLD and NCM continue to power on. What do you other guys think? Robbbbbbb if you’re reading this, be great for your take on it.
NCM Price at posting:
$32.96 Sentiment: None Disclosure: Held
