• 8 hours Saudis Eye Billions As Stocks Get Emerging Market Boost
  • 11 hours Airbnb In Acquisition Mode Ahead Of IPO
  • 14 hours Gold Hangs At $1,300 Ahead Of Fed Meeting
  • 16 hours Champagne Sales Slow As European Economic Worries Grow Louder
  • 1 day Putin Signs “Digital Iron Curtain” Into Law
  • 1 day Russian Metals Magnate Sues U.S. Over Sanctions
  • 2 days Tesla Looks To Jump Into Indian Market
  • 2 days Global Banks Lay Groundwork To Re-Inflate Asset Prices
  • 2 days Homeowners Experiment With Risky New Investment Trend
  • 2 days U.S. Tech Stocks Look Increasingly Vulnerable
  • 3 days De Beers To Expand World’s Most Profitable Diamond Mine
  • 3 days Ford CEO Gets Raise After Massive Layoff Round
  • 3 days Germany’s Flirtation With Recession Could Cripple The Global Economy
  • 4 days Where To Look As Gold Miners Inch Higher
  • 4 days Google Faces Billions In Fines From European Regulators
  • 5 days The Energy Industry Has A Millennial Problem
  • 5 days Russian Banks Scramble For Sanction Loopholes
  • 6 days Gold ETFs Take A Hit After Four-Month Run
  • 6 days European Union Takes Aim At Ten New Tax Havens
  • 6 days Goldman Defends Trillion-Dollar Corporate Buyback Spree
The Chatroom Cartel Running Global Bond Markets

The Chatroom Cartel Running Global Bond Markets

Eight major banks have been…

Lending: The Good, Bad, And Ugly

Lending: The Good, Bad, And Ugly

Aristotle said, “The most hated…

  1. Home
  2. Markets
  3. Other

Potential Bottoming Patterns in the Precious Metals Complex...

There is a combo chart for the PM complex I've been following, on the short term 10 month daily look, which shows a potential H&S bottom forming. I put a neckline symmetry line on the charts to get a feel for where the low for the right shoulder may form. Some are fairly parallel to the neckline like GLD, SLV and the HUI with GDXJ and SIL being the most unparalleled. The CDNX is showing the most weakness as it probably has to do with some of the small cap energy companies.

GLD is trading the closest to the neckline so it may give an early heads up for the PM stock indexes. Keep in mind these potential H&S bottoms won't be complete until the necklines are broken to the upside.

Precious Metals and Indices Daily Chart
Larger Image

This next chart is a long term weekly look at the HUI which shows the potential big trading range with the first reversal point starting at the August 2016 high. Reversal point #2, which may be underway should take the HUI up toward the 286 August high which would be the area to look for the 3rd reversal point to the downside.

Note how the top of the trading range formed a H&S top for the first reversal point and now it looks like a H&S bottom for the 2nd reversal point. Interesting to say the least.

Gold Bugs Index Weekly Chart
Larger Image

Below is a daily chart for the HUI which shows the potential H&S bottom forming inside the large trading range.

Gold Bugs Index Daily Chart
Larger Image

The 20 year monthly chart for the HUI shows you a good look at all the consolidation patterns that formed during the bull market years. During the bull market the HUI formed one consolidation pattern on top of the next. I have all the reversal points labeled on each consolidation pattern. Most of the consolidation patterns lasted anywhere from14 to18 months or so.On that basis we are likely less than half way through this present pattern. The red numbers on the left side of the chart shows the same height for each consolidation pattern. As you can see our current  pattern is also the same height.

This is a good area to see a H&S bottom build out just like the H&S top that built out at the first reversal point which is defining the trading range.

Gold Bugs Index Monthly Chart
Larger Image

Markets are live entities, Each day new patterns can slowly emerge Chart patterns are the sum total of actions of all the traders who participate. With an open mind, we must evaluate and re evaluate and  constantly  be on the lookout for clues. Stay tuned , as the Precious Metals Markets are getting interesting once again.

All the best,

 

Back to homepage

Leave a comment

Leave a comment