The “Power of the Pattern” reflected that both Gold and Silver were inside of a established falling channel and in the short run didn’t appear to be “Safe Investments” (see post here)
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Gold continues to work lower inside of falling channel (A). If Gold breaks below support at (3) it could slip toward the bottom of channel (1) is quick fashion.
So, another day here and gold seems to have leveled… are we still waiting for the other shoe to drop?
Chantrelle….The pattern you are suggesting is possible. With the positive sentiment towards gold being so high, this pattern becomes a little less favorable to me. Last week, CNBC produced a poll that reflected Gold was by far the favorite investment to own, coming in around 40%….with bonds at the low at 8%.
A year ago GLD became the largest ETF in the world. I suspect a 8 years up in a row, Gold needs to become less of a fan favorite before it runs up more. I am looking to be a buyer of Gold at lower support for sure. At this time many premium members are shorting Silver at this moment.
Thanks for your comment and kind words, much appreciated,
Chris
What do you think about a possible inverse head & shoulders pattern in gold & silver? Would today’s lows be putting the finishing touch on the right-hand shoulder?
Thank you for your fabulous work. Love the comic relief you add to your insights.