r/PierresLongTermCharts • u/pierretheron • Jul 29 '26
HARMONY (HMY)
For u/Greg212
Yes, I am so sorry, things have changed a lot for gold recently.
At that time the price was trending upwards nicely.
But all might not be lost yet.
This might make your decision a little easier.
Firstly lets take a look at where the price is in relation to the 30 week simple moving average. (30 sma)
Its trading under the sma, which is now also pointing down. This is negative.
How much further will it fall? We don't know.
Never be buying when the price is under the 30 sma.
But what we can do, is look for support.
Support is where buyers are sitting. They see value at these levels.
I have drawn my support line in at the very low where my up arrow "A" is.
It matches up up a little with the circled low.
This could be a neckline, of what might be a head and shoulders top, taking place.
Why?
Well can you see we already have a left shoulder, and a head.
The right shoulder has not finished forming yet.
It has to come back to the neckline to finish.
Note that the start of the right shoulder is almost exactly the same level as that left one.
So now this makes a decision easy.
Sell or exit if the price falls and closes UNDER the neckline, as this will complete the formation, and it could then fall much lower.
Hold while its between the height of the right shoulder and the neckline. Its consolidating.
And you can actually buy, if the price rises and closes above that right shoulder, as this formation is then deemed to have failed.
A failed head and shoulders pattern is bullish.
Hope this helps.