Loading ...GDX Triangle
Many of us have been watching the Triangle on the PM Indices for a while now..with great anticipation
The GDX has been the most crisp pattern.
A picture is worth ? A lot if you are trading PMs
The pattern finally broke out yesterday
Now to be fair this is a weekly chart so we need to wait till Friday to declare it a bearish breakout
And there is a small chance it could be a false break before an around the apex Bullish move.
But …it was a rare Weekly Gap breakout as it stands now …which lends even more bearish significance .
On the plus side the 200 dma is still supporting But if you are being honest with your self and you are using this
triangle as your guide…well you know ….at the very least you need to watch this apex like a hawk.
I hold out little hope for them aside from a small bounce here and there. That USDJPY is on a mission to mars apparently. It reverses hard and I change my tune.
Not a promising looking chart for us bulls Fully. The only thing I’s say is that it’s less convincing due to the lack of volume. That may change though.
Only 1 trading day so far …3 more to come.
That’s true. I’ll reserve judgement until the end of the week.
I bought a few silver stock shares yesterday. I’m hoping for a big reversal the latter half of this week. If this breakout is the real deal, however, we could see a bloodbath. I saw one guy calling for GDX @ $6 – $7 a share with confidence.
I am watching for the gap fill at 19.43 on the daily, there is a Gann angle running through that price area on Schism’s July 18th target, could we see the miners find bottom and bounce with gold trailing lower for a week or two?
I would have counted differently, putting the 1 where the 2 is…with the reversal of the annual higher high. According to Edwards and Magee, 75% of symmetrical triangles are continuation patterns, with 25% reversals.
Within a symmetrical triangle, the closer price gets to the apex without a breakout, the less reliable the pattern. In such cases, extreme volatility can occur.
Otherwise, momentum is down, and price action weak. The USD has been plumbing fresh intermediate lows, yet G&S haven’t even approached the levels they reached the last time the USD was this beaten down.
I’ve been short for the past month and see no compelling reason to go long yet. On the other hand, there is certainly cause for optimism if you are an ardent pm bull. Who knows? We could get a nuclear war started any day now!
https://www.youtube.com/watch?v=CYSAyPNR7qg
RTV
I started point 1 at THE bottom . So it is valid
One could also start Point 1 at Point 2
In that case we would have 1 reversal down . 2 reversal up , 3 reversal down 4 reversal up then 5 reversal down and then the breakout
The only difference would be this is an odd number so it is a reversal pattern
My count is even number and a continuation…which is the 75% thing.
Either way the breakout is Down.
Thanks for bringing this up as it is instructional
Yikes…we are reduced to hoping for a nuclear war which would be “optimistic ?
just some of my cynical humor there, fully – nobody should hope for a disaster to save a position – unless they’re highly leveraged! (sorry – can’t help myself!)
I knew that..
🙂