Gold Bugs Beware

In pulling up the weekly charts on the gold sector, I noticed something that I found pretty interesting.  Over the past few months, the $XAU has actually been forming a massive head and shoulders top.  Now, nothing has happened as far as a breakdown but I wanted to alert you to the potential.  Sure gold stocks were up huge today but nothing has been proven as of yet. 

This market has two levels that I am watching closely, 162 on the downside and 200 to the upside.  A weekly close above 200 will invalidate this signal while a close below 162 will confirm it.  It could get ugly if that happens.

Notice how we have a double shoulder on each side of the head.  Something is brewing.  Let's stay alert on this sector.