I watch Gold and Gold-related stocks on a daily basis. I've had my eye on Goldcorp Inc. (GG) for the past few weeks, ever since I noticed a Head & Shoulders pattern forming in the stock. Well, the pattern is pretty much complete. If the technical formation pans out the way it typically does, we will see some downside price action from here.

Since forming the left shoulder, head, and right shoulder, GG broke below its upsloping neckline. The stock continued to drop after moving through the neckline, but recently reversed to the upside. This is common, the stock is simply retracing to neckline support turned resistance before completing the the trend reversal.

The measured move on this H&S pattern takes the stock to approximately 21.50. This gives me an indication that the price of gold may be in for some downside as well. This technical formation could pay off big.

Andy Swan is co-founder and head trader for DaytradeTeam.com.  To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.