Red-Hot Resources: Friday Chart Fiesta

Last week, I was keeping an eye on a potential head-and-shoulders reversal pattern in gold. However, gold did not break the neckline and instead pushed higher. One more niggling worry is that RSI (a momentum indicator) is making a lower high as gold makes a higher high. This is worrisome, so exercise caution. But gold is more bullish now (technically speaking) than it was last week.

I added a gold position in Red Hot Resources yesterday and may be doing more of that this next week. $1,000 an ounce should draw gold like a magnet now.

Meanwhile, the US dollar is looking weaker ...