Gold Reverse Head and Shoulders

While Barrick Gold's (ABX) decision to eliminate all of its hedges on the price of gold may end up marking a short-term top in the price of the commodity, technicians would argue that the company's decision was a good one. As shown below, the price of gold is in the late stages of a reverse head and shoulders pattern. If this is the case, and the commodity can finally decisively break its neckline level of $1,000, this pattern would imply a price target of $1,300 for the metal.