Loading ...Dreaming About Damn Triangles – Breakout/Breakdown Timing
If you’re a bull it’s a question of how much longer until the next big move up. Beware the bottom rail though – it’s a pretty strong ‘line in the sand’ for me. The current symmetrical triangle reaches its apex (the way I’ve drawn it), by June.
The longer term symmetrical triangle reaches its apex next January.
I think well see a decisive move one way or the other before then though.
Edit – to correct the first chart !
Everybody’s charts seem to vary a bit. Some show we’ve touched the main rising trendline. Mine shows we still havent.
http://i68.tinypic.com/2n8zn2g.png
[IMG]http://i68.tinypic.com/2n8zn2g.png[/IMG]
Additionally, the falling channel seems to be a bit wedged looking. So falling wedge = bullish. But I agree, this pattern is coming to a close within the next 18 months. Let’s hope its bullish.
If it’s any indicator – I follow option activity in the financial markets. Large dollar amount option trades – in the millions, people call it “smart money”. Big investors placing big leveraged bets.
In Jan 2017, and going back a few months prior, there were some large out-of-the-money call options placed on $GLD, $ABX, maybe 1 or 2 other names. The calls were LEAPS – they don’t expire until 2018 & 2019. All in the $ millions. The activity stopped in Feb as gold prices took a breather. But again, they have a lot of time left on these options. So I guess some large investors are betting this triangle will break upwards.
To add some more detail^ the strike price on those call option purchases were in the $140s & $150s on $GLD. In the $40s on $ABX…..thats 30% higher price on gold and a double on Barrick.
Just saw your comment on the other post – thanks