Gold is tracing out a classic head and shoulders pattern. It is something I am watching with great interest. According to Bulkowski, if the rise into this pattern is steep, the move down is more violent/deeper and if the neckline is upwardly sloping, the pattern has more validity. But what bothers me, is it looks too pat, tracing right at fib lines, into a seasonal strong period and with uncertainty brewing internationally, suspect it is a shakeout not a decline. I will look for a failure at the 50 EMA, and a retrace back to failing before I aggressively hedge/short my positions.