Not doubt many of us are watching that nasty little SHS pattern building out directly below the neckline of the larger SHS pattern. We already know from chartology that a small consolidation/reversal pattern above, below, or on the breakout trend line of a reversal pattern will often confirm the legitimacy of the breakout. In this example Gold’s breakout was down (solid dark blue trend line)
Bottom line: if the smaller SHS pattern plays out one might expect to see at least the minimum Price Objective (PO) for the larger SHS pattern – i.e. $1220.
For the bull case we need the little neckline at $1270 to hold.