Loading ...Are We Forgetting…
…That we already broke out of a very big chart pattern. The price action into this bullish, symmetrical triangle goes back about 20 years. The bigger the pattern, and the longer it takes to build out, the more significant a breakout is. Newsflash – we broke out already. Unless I’m missing something, and unless we see an ‘around the apex’ move down, this should mean the bull is on. The charts are talking to me again (I really should see someone about that).
If we close the month out w/ that candle I’ll be pretty excited about it.
I have brought this up before, but don’t forget what Edwards and Magee say about patterns that reach the end of triangles – they most often lack any impulsive power and just drift along. Mr. Market likes to frustrate as many people as possible and I think that might just do it!
I agree Gary – the monthly close is what really matters. I take your point Ken, and ideally, a break before now would’ve been better. I think we needed to wait for the gold cycle to ‘catch up’ though. Last year was too early (hence the pullback). Autumn is the most favourable time of year. If this is a continuation pattern (as 75% are, apparently), the primary direction or trend, before this symmetrical triangle formed, was most definately UP. More here, for anyone interested http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:symmetrical_triangle_continuation
For the sake of friendly debate, I’m not fully convinced it’s a breakout yet. I don’t include wicks when I draw my trendlines – because price never closed there. If you don’t include wicks, it doesn’t look like a breakout yet. But don’t get me wrong, I hope it breaks out. We’re very very close.
.02c
Valid point Nick 😉
NUGT 60 still finding resistance for the 5th time–pulling back in what just might be a BULL flag? We will know shortly…
Indeed we will.