Shared a few days ago that SLV had created a flag/pennant pattern, suggesting a huge move should take place in SLV and the key hint on direction was that On-Balance-Volume (OBV) was breaking support. (see post here).

Three weeks ago I shared the chart below, reflecting Swiss Franc had created a pattern, suggesting that Gold/GLD would be put under downside pressure . (see post here)


At the time of the GLD/Franc post, Gold had just hit the $1,900 level and as suspected, many owners/investors of Gold let me know that NO WAY would the Franc fall or have its impact on Gold/GLD.  A day after the year to date high in Gold, I shared that the pattern in Gold looked like a Eiffel tower pattern and that if you see the left side of the tower, often times you see the right side as well! (see Gold Eiffel tower pattern)

 I am not into labels or actual reasons why something happens… I just want to help people “enlarge portfolios regardless of market direction” by using the Power of the Pattern as our friend!”  So far since the above posting, the Franc has experienced one of its largest single day declines in 30 years and Gold has experienced some weakness as well.  Why has it happened?  Do we really care about the reason why?  I don’t want to be right on reasons, just want to make money!

If the “Power of the Pattern” remains correct, both of these assets have further to fall, since they both just hit long-term resistance levels!  GLD and SLV both broke OBV support levels of late, that is why the pattern was suggesting ZSL could do well…so far so good.

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