The chart below was posted on 8/23, due to Gold hitting a long standing upside target at $1,900 (see post here).  The theme of the first chart below was… if you see the left side of an Eiffel tower pattern, often times you end up seeing the right side too! 

Is the Eiffel tower pattern proven at this time? NO!    Moving in that direction?  I will let you be the judge of that!  (Gold stood at $1,888 at the time of the post).

Last weeks quiz reflected that an asset looked to have created a “Double Top” which presented two opportunities…Harvest at the highs and if aggressive, look to score on defensive by going short at this unique opportunity.  (See last weeks quiz answer here)


Below is a dual chart of GLD and SLV with On Balance Volume (OBV) overlays…


GLD and SLV have experienced very sharp rallies from late June to mid August.  In the past few days, the rising support lines and OBV lines created from those rallie, are breaking to the downside!  The quiz last week reflected that a “lower than normal risk situation was at hand” to short Gold/Silver.  The breaks of these support lines should help increase the potential that GLL and ZSL have some more upside.

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