Loading ...Parabolic Chuck’s : Mother of all Bull Traps Post from May 28
Even the most Ardent Bull Has to admit this scenario posted by our Good Friend from the Chartology Forum is on the verge of POTENTIALLY becoming reality.
Must read review.
https://goldtadise.com/?p=371529
Sir Chuck. You shall be a legend if this continues as you have scripted.
Hope you are well wherever you are .
Thanks for reaching out Sir FGC through email.
I told ya I was busy for a while and couldn’t update charts for a bit.
If this thing is going down we’re right on the precipice for sure. At a major point. We could see another bounce here before we dropped which I’m hoping to play if it happens.
On the gold chart, if $1200 holds we could see another right shoulder form for some more reverse symmetry.
Also, I don’t know if you saw it Sir FGC, but about a week and a half ago, the day after the election, I actually did update the charts, and said it looks like we’re going down in gold. Now we just have to see if one more bounce happens, perhaps on a dollar hard backtest.
Of course the action can do whatever it wants and we might run up to the moon in gold from here. Good luck all.
Thanks for Checking In Chuck.
Happy Thanksgiving
One more thing: IF this whole thing is bearish and we do have one more bounce first, I could see $1260-1300 first before dropping through $1200.
All depends on the Euro IMO, which is on the bottom rail of its major monthly pattern now. Does it pop and then drop?
So we should sell all our PM stocks on the next probable rebound?
If the bear market resume breaking the 1045 support we could see the most terrible carnage in this sector ever.
There is not anymore a single analyst that is bullish right now,it’s almost surreal this situation.
PM stocks experienced one of the worst bear market EVER over the last 5 years,is this the right moment to sell?
Thats a personal decision Mamare
I agree this is EXTREME pessimism here
Surreal is a good word .
The sentiment argues for a good bounce here however
I would still be Cautious at 1250 -1300 if we ever got there
Copper log chart looks the same as the others. I’ll let others post it, I don’t have access to such fancy, long term charts.
I just looked. You’re right! Almost a perfect fit.
Here is the thing about all of this. We just had a 80% bear market in the majors and a 90-95% bear in the juniors. Do we get another one? I will grant you nothing is impossible, but would say extremely unlikely. Willing to bet hard cash we don’t.
So let’s talk worse case here. The deflationists are right. Commodities get crushed. Oil to $15 Copper to $1.30 USD to 180. Real estate down 50%+. Where will the gold stocks be? Answer likely higher, actually likely much much higher. That’s the model for a post bubble contraction. That’s what happened in the 1930s. Gold mining input cost go down, gold as a store of value and fear trade goes up. Margins vastly improve.
We may double bottom here, but I don’t see any worse than that especially when we are beyond the 8 year bottom cycle point.