Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
How To Time Market Tops and Bottoms - 24th June 19
5 basic tips to help mitigate the vulnerability inherent in email communications - 24th June 19
Will Google AI Kill Us? Man vs Machine Intelligence - 24th June 19
Why are Central Banks Buying Gold and Dumping Dollars? - 23rd June 19
Financial Sector Paints A Clear Picture For Stock Market Trading Profits - 23rd June 19
What You Should Look While Choosing Online Casino - 23rd June 19
INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - 22nd June 19
Here’s Why You Should Drive a Piece of Crap Car - 22nd June 19
How Do Stock Prices React to Fed Interest Rate Cuts? - 22nd June 19
Gold Bull Market Breaking Out! - 21st June 19
Post-FOMC Commentary: Delusions of Grandeur - 21st June 19
Gold Scores Gains as Draghi and Powel Grow Concerned - 21st June 19
Potential Upside Targets for Gold Stocks - 21st June 19
Gold Price Trend Forcast to End September 2019 - 21st June 19
The Gold (and Silver) Volcano Is Ready to Erupt - 21st June 19
Fed Leaves Rates Unchanged – Gold & Stocks Rally/Dollar Falls - 21st June 19
Silver Medium-Term Trend Analysis - 20th June 19
Gold Mining Stocks Waiting on This Chart - 20th June 19
A Key Gold Bull Market Signal - 20th June 19
Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - 20th June 19
Investing in APPLE (AAPL) to Profit From AI Machine Learning Stocks - 20th June 19
Small Cap Stocks May Lead A Market Rally - 20th June 19 -
Interest Rates Square Minus Zero - 20th June 19
Advice for Financing a Luxury Vehicle - 20th June 19
Stock Market Final Blow Off Top Just Hit… Next Week Comes the FIREWORKS - 20th June 19
US Dollar Rallies Off Support But Is This A Top Or Bottom? - 19th June 19
Most Income Investors Are Picking Up Nickels in Front of a Steamroller - 19th June 19
Is the Stock Market’s Volatility About to Spike? - 19th June 19
Facebook's Libra Crypto currency vs Bitcoin: Five Key Differences - 19th June 19
Fed May Trigger Wild Swing In Stock Index and Precious Metals - 19th June 19
How Long Do Land Rover Discovery Sport Brake Pads Last? - 19th June 19
Gold Golden 'Moment of Truth' Is Upon Us: $1,400-Plus or Not? - 18th June 19
Exceptional Times for Gold Warrant Special Attention - 18th June 19
The Stock Market Has Gone Nowhere and Volume is Low. What’s Next - 18th June 19
Silver Long-Term Trend Analysis - 18th June 19
IBM - Watson Deep Learning - AI Stocks Investing - Video - 18th June 19
Investors are Confident, Bullish and Buying Stocks, but… - 18th June 19
Gold and Silver Reversals – Impossible Not to Notice - 18th June 19
S&P 500 Stuck at 2,900, Still No Clear Direction - 17th June 19
Is Boris set to be the next Conservation leader? - 17th June 19
Clock’s Ticking on Your Chance to Profit from the Yield Curve Inversion - 17th June 19
Stock Market Rally Faltering? - 17th June 19
Johnson Vs Gove Tory Leadership Contest Grudge Match Betfair Betting - 17th June 19
Nasdaq Stock Index Prediction System Is Telling Us A Very Different Story - 17th June 19
King Dollar Rides Higher Creating Pressures On Foreign Economies - 17th June 19
Land Rover Discovery Sport Tailgate Not Working Problems Fix (70) - 17th June 19
Stock Market Outlook: is the S&P today just like 2007 or 2016? - 17th June 19

Market Oracle FREE Newsletter

Gold Price Trend Forecast Summer 2019

Gold, Silver and HUI Stocks Diamond Patterns

Commodities / Gold and Silver 2013 Dec 19, 2013 - 09:33 AM GMT

By: Rambus_Chartology

Commodities

Lets get right to the charts tonight as everything seems to be going according to plan so far. Today’s move in gold seemed volatile but when you look at the daily chart, the price action fit right into another little Diamond consolidation pattern, that has formed just below the bigger blue Diamond consolidation pattern. When you look at the very last bar on the chart below you can see the high today came right up to the top rail on the right side of the Diamond and then fell away. Then just towards the end of the day it broke through the bottom rail. So it looks like our small consolidation phase maybe coming to an end. If we get a backtest tomorrow, to the bottom red rail, it would be a good low risk entry point to add another small bite to your existing position.


Lets look at a daily chart that shows the fanlines I’ve been using that shows how gold has been backing and filling coming down from its most recent high. The June low is the starting point for your fanlines as that area was the most important low in this decline. Note, when each fanline is broken to the downside you generally get a backtest to the underside at some point. Normally after the 3rd fanline is broken is when the pattern is complete. In this case I’ve added a fourth fanline which gold closed right on today. Note the heavy black dashed horizontal support and resistance rail that runs through the chart. Above is positive and below is negative. Notice how its reversed its role from support to resistance at the end of November.

If you look really close, at this monthly chart for gold, you can see it’s now trading below the month of November. With just a little more downside action it will be trading below the all important June low which will setup a lower low for this bear market. So far this reverse symmetry chart is working out beautifully.

As you can see on this last chart for gold the possible neckline, of a huge H&S top, is within striking distance. Charts like this is what makes this game so interesting because you can see what the potential is before it happens. And then to watch it unfold in real time is just the frosting on the cake. So far so good.

Silver is also forming a small red Diamond consolidation pattern just below its big blue Diamond. Unlike gold silver didn’t breakout of its little red Diamond pattern today so we have to wait for confirmation before we add a few more shares of DSLV.

Lets now look at a weekly chart for SLV that shows us the two pretty Diamonds that have formed. I know it feels like this backtest has taken a long time but if you look at the bigger blue Diamond the backtest there took about 12 weeks vs about seven weeks with our smaller red triangle. The apex of the Diamond is critical resistance. We don’t want to see that area violated under any circumstance.

Below is a long term monthly chart for silver that shows neckline being tested on this huge potential H&S top. As I have said several times, I really want to see how silver interacts with this all import trendline as it will give us some good clues to go by. So far it has bounced off of the neckline once so it’s telling us it is getting warmer.

Lets now take a look at the HUI with a simple brown shaded support and resistance zone that has worked out beautifully so far. The black arrows shows previous support points that should now turn into resistance since the HUI has broken below the support and resistance zone. Keep in mind everyone that bought above that brown shaded support and resistance zone is underwater and looking for a place to get out even if they can. This should put a ceiling on the price for the HUI.

Below is the HUI Diamond consolidation pattern that we’ve been following for quite awhile now. The breakout is still under the gravitational pull from the blue Diamond but with a little more downside effort the HUI will finally break free and move down to the next area of support.

I haven’t shown you this chart for the HUI yet that has an expanding downtrend channel. I did show you an expanding uptrend channel on the gold monthly chart above that has that big potential H&S top pattern forming. This expanding downtrend on the HUI is just the opposite, it’s getting bigger at the bottom. I’ve been following this chart very closely since the 6th reversal point was hit on the blue Diamond that coincided with the top rail of the expanding downtrend channel. This chart starts at the top right shoulder of the massive H&S top pattern, labeled with the bold S. This is what that decline has looked like since the top at 520. Note the smaller blue bearish falling flag that began the expansion of this downtrend channel. This chart looks very ominous to me. If I was a bull and seen this chart I would be very scared of the consequences if it plays out like I think it will. You can see the breakout from the blue Diamond is well underway with nothing but air below.

Below is a weekly line chart for our blue Diamond that shows the top of the right shoulder that we just looked at on the chart above.

The weekly line chart shows us a bearish falling wedge that I consider to be a halfway pattern. Same consolidation area just a different look.

This last chart I would like to show you tonight is a monthly line chart for the HUI. Keep in mind a line chart just shows the closing price, whether it’s a daily, weekly or monthly look. For me this chart really puts things into perspective. As you can see, on a monthly closing basis, we are now trading down at the 2008 crash low. Pretty incredible when you think about it. I don’t have time to show you tonight but alot of the big cap precious metals stocks still have a long ways to go down yet before their price targets are hit. So can the HUI go lower than the 2008 crash low? Stick around and find out. All the best…Rambus

All the best

Gary (for Rambus Chartology)

http://rambus1.com

FREE TRIAL - http://rambus1.com/?page_id=10

© 2013 Copyright Rambus- All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Rambus Chartology Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules