• 860 days Will The ECB Continue To Hike Rates?
  • 860 days Forbes: Aramco Remains Largest Company In The Middle East
  • 862 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,262 days Could Crypto Overtake Traditional Investment?
  • 1,266 days Americans Still Quitting Jobs At Record Pace
  • 1,268 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,271 days Is The Dollar Too Strong?
  • 1,272 days Big Tech Disappoints Investors on Earnings Calls
  • 1,273 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,274 days China Is Quietly Trying To Distance Itself From Russia
  • 1,275 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,279 days Crypto Investors Won Big In 2021
  • 1,279 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,280 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,282 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,282 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,286 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,286 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,286 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,289 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

PM Complex Update...

The inflection point in many of the different markets still continues to develop. The precious metals complex is approaching a very critical backtest to some important necklines we've been following. I added the GDXJ to the combo chart which shows the HUI, GLD, SLV and the GDXJ have all broken down below their respective necklines and are now in the process of backtesting those necklines from below. I can't emphasize enough how critical this backtest is to the overall health of the impulse move out of the January low this year.

From a Chartology perspective the price action trumps everything else. It's possible that these H&S tops may fail but until the price action can trade above those necklines the H&S tops are in place. I have the backtests labeled on the charts that need to be broken to the upside to negate those potential topping patterns. On the other hand if the backtests to the necklines hold I also have the price objectives for those would be H&S tops.

If the price action blasts up through those necklines that would be very positive but if I see the price action starting to stall out around those necklines I will be forced to exit the remaining 50% of the PM portfolios. This could very well be the shakeout before the breakout higher but these necklines will have to be broken to the upside first.

HUI Gold Bugs Index Weekly Chart
Larger Image

 

Back to homepage

Leave a comment

Leave a comment