CLICK ON CHART TO ENLARGE
The Power of the Pattern attempts to find key Tops & Bottoms (See My Strategy). A few days before the all-time highs in Gold (Around $12 from the all-time highs) the upper left chart was shared, reflecting that an Eiffel Tower pattern in Gold looked to be at hand (see post here) At the time Gold ETF (GLD) had become the largest ETF in the world!
The lower right chart is an update on Gold’s Eiffel Tower pattern. As you can see Gold has lost over a third of its value since the original posting, falling around $800 since the posting. Important price action of late- Gold at (1), is attempting to break below a one year support shelf.
One of the challenges to the “Right Side” of an Eiffel tower pattern is this…Often assets fall back to where the entire rally got started! The above mentioned post shares a few key assets that have retraced huge upside moves over the past 20 years. (see here)
The Power of the Pattern started sharing a couple of years ago that the $15 level in Silver was the target of a measured move projection, when Silver was trading around $30. Well folks, guess where Silver is trading this morning?
If you like to buy & hold metals, trade them or think a potential buying opportunity in this hard hit area is near, I am sharing these type of thoughts with our Metal Members on a weekly Basis.
Are we in unique times in the metals complex? Only time will tell. Are unique opportunities at hand? In my humble opinion I believe we are!
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