AMEX GOLD BUGS INDEX

For today's chart, we've chosen to take a look at the Gold Bugs Index because it is quickly approaching the neckline of a head and shoulders pattern. This chart is slightly different from what we generally use because each bar represents one week rather than one day. This longer-term pattern will be used by traders to predict a major shift in the direction of the trend in gold prices - a move below the support near $295 would signal a move lower.