The picture above came from the 1976 Movie “Bad News Bears.” If dual support below is taken out, it could easily become “Bad News For Metals Bulls!”
In 2011, the Power of the Pattern suggested that Gold could be down for years, due to the pattern set up in the Swiss Franc. See 2011 post HERE Below looks at the Swiss Franc/US Dollar index over the past couple of decades.
CLICK ON CHART TO ENLARGE
The Swiss Franc/US$ ratio has remained inside of rising channel (1) for the the 20-years. When the ratio hit the top of the channel and created huge reversal pattern (bearish wick) at (2), Gold, Silver and Miners all were soft for years to come.
Now the Franc/US$ ratio is testing dual support at (2), which could be the neckline of a long-term topping pattern. If this 20-year support would happen to give way at he potential “neckline” of a topping pattern, it could be “Bad News for Metals Bulls!”
The Power of the Pattern has been sharing each week to Premium and Metals members, the price pattern and the important of the Swiss Franc each week for the past 6-years. If you would like to stay on top of patterns in the metals space, we would be honored if you were a member. This is a dual test of support, for metals to move higher, this support NEEDS to hold!