Market Update…Precious Metal Consolidation / Stock Market Decline
Last week, I mentioned that it might be time for PM stocks to start consolidating their gains since the last reversal point in the blue 5-point triangle reversal patterns. It seems that it has now started after the high of the last few weeks.
Next is the daily line chart which shows today’s move to the bottom left, a small double top suggesting the consolidation phase is beginning. I also added Fib retracements to get an idea of where reversal point #2 may appear, with the recent high being reversal point #1.
I also mentioned last week that we shouldn’t be surprised to see a backtest towards the upper rail of the August 2020 trading range. This weekly chart shows three areas to look for possible support. The first is the upper rail of the 2020 trading range. The second is the black dotted S&R line, the 3rd zone being the 30 week ema.
This short-term daily line chart for the US stock markets shows the health and safety highs trying to complete the backtesting process. The IWM is trying to break out of its blue triangle which will either be a mid way down pattern or if things get really nasty this could be the first of several consolidation patterns that create the downward impulse move. low. Several of the indices are showing a lower low, which we want to see to help confirm the new downtrend.
This last chart for today is the longer term daily line chart. What stands out the most to me is the rally leading up to the H&S highs. If there was ever a place to look for downward inverse symmetry, these charts show that possibility. One step after another. All the best…Rambus
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