I like to look at the big picture sometimes – ‘zoom out’, forget the day to day, week to week stuff. Here’s the theory again…

 

 

And here’s the mother of all symmetrical triangles…

 

 

So what does it mean ? This maybe…

 

 

A reminder of what the HUI has done in the past, following such oversold %R positions…

 

 

Here’s look at a few  S&R lines and also some indicators…

 

 

And finally, a look at the COT position. Just look at the commercials – decreasing short positions and increasing long positions, whilst the specs are doing the opposite !

 

 

I think we’re due a dollar bounce, which will coincide with some slight drops and sideways consolidation in gold/silver. As long as the commercial banks don’t dump huge numbers of contracts, we should be ok. If they do, it may still push us to the $1180 area. If that happened I would be very, very bullish. Why ? Because the COT position would be showing the commercial banks with no net short positions, and guess what, they are always on the right side of the bet.