Gold remains at the top of its channel-DOUBLE TOP….Silver is completing a Flag/Pennant pattern-

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Gold hit the tops of its 10-year rising channel for the first time in 3 years on 8/22 at (1) above, which happened to reach my longstanding Gold target at the $1,900 level. Each time a certain situation took place, Gold backed off 20%…different this time around? (see $1,900 target/20% decline here). Since then it has created some wild swings inside of a $200 range. At the same time Gold hit the tops of its channel, Silver happened to reach a high as well at (3).

I chose GLD for the quiz last week, since the Power of the Pattern was suggesting a “Double Top” had been created (See post here)

Due to the situation in Gold, I find the flag/pennant pattern all the more interesting! Flag/pennant patterns the majority of the time suggest that a very large move will take place on a breakout/breakdown. Conservative players will want to own a breakout/short a breakdown when it takes place. Aggressive options/spread players, should have a ton of fun with this situation, because of Silver breaks to the downside here, it should reward them very well!!!

5 Comments

Chris Kimble on 09/13/2011 at 4:54 AM

Apurv… Gold remains inside of a solid rising channel. This channel has been a very good trade the range, harvest at the top and buy on support.

apurv jain on 09/12/2011 at 11:12 PM

Hi chris ,

So according to you both gold & silver can come down any time ?

Rob on 09/12/2011 at 7:11 PM

Note the non-linear scale on the left chart. Does the channel pattern still hold? No..

Chris Kimble on 09/12/2011 at 11:12 AM

Lurking… you are to kind to say that! As a Premium Member tells me…you have “faith” in the Power of the Pattern.” I agree with him. When certain patterns take place, the Power of the Pattern, gives us a two-thirds chance of being correct and if it is wrong, which it is a third of the time, it “won’t be wrong for long!”

Thank you for your viewership and taking the time to share such a humbling phrase.
Chris
P.S. Back in 2008 which was “great escape” part 1, Gold fell around 20% and Silver declined almost 65%. Should GE2 (great escape 2) take place, I suspect Silver will get pounded again!

Lurking on 09/12/2011 at 10:42 AM

Chris,

Your prognosticating is just amazing. As it stands now, I guess we know which way silver is falling.

Chris Kimble on 09/13/2011 at 4:54 AM

Apurv… Gold remains inside of a solid rising channel. This channel has been a very good trade the range, harvest at the top and buy on support.
apurv jain on 09/12/2011 at 11:12 PM

Hi chris ,

So according to you both gold & silver can come down any time ?
Rob on 09/12/2011 at 7:11 PM

Note the non-linear scale on the left chart. Does the channel pattern still hold? No..
Chris Kimble on 09/12/2011 at 11:12 AM

Lurking… you are to kind to say that! As a Premium Member tells me…you have “faith” in the Power of the Pattern.” I agree with him. When certain patterns take place, the Power of the Pattern, gives us a two-thirds chance of being correct and if it is wrong, which it is a third of the time, it “won’t be wrong for long!”

Thank you for your viewership and taking the time to share such a humbling phrase.
Chris
P.S. Back in 2008 which was “great escape” part 1, Gold fell around 20% and Silver declined almost 65%. Should GE2 (great escape 2) take place, I suspect Silver will get pounded again!
Lurking on 09/12/2011 at 10:42 AM

Chris,

Your prognosticating is just amazing. As it stands now, I guess we know which way silver is falling.

Gold remains at the top of its channel-DOUBLE TOP….Silver is completing a Flag/Pennant pattern-

5 Comments

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