There are two rather large consolidation patterns that make up the internal structure of the potential 2016 rising wedge formation, the 2016 bullish falling wedge and the possible 2020 expanding falling wedge. We’ve been following this next long term weekly chart for the HUI which shows the 2016 trading range which is still under construction. The SLV has a small double bottom reversal pattern. The reason I want to start with this chart is to make you aware of where those small H&S and double bottoms are in the bigger picture.Īs you can see the GDXJ, GLD, SIL and the GOEX have a small H&S reversal pattern forming after the steep decline from the double top. ![]() I would like to start with the daily line chart for the PM complex we’ve been following on a daily basis which now shows some small reversal patterns like the H&S and double bottoms. Once that happens there are no sellers left and the move reverses direction leaving those that sold into the decline sitting on the sidelines. The reason this pattern is so bullish is because it is made up of lower highs and lower lows with the last low being extreme, catching all the sell/stops and scaring investors out of their positions. My experience with this pattern is that it often leads to a big move. ![]() This is a bullish pattern that few if any chartists actually look for. I’ve been mentioning lately that I thought that many areas in the PM complex could be building out a potential bullish expanding falling wedge.
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