CHART OF THE DAY – FALSE REVERSAL? [archeive]

PedestrianMay 10, 2017 at 6:21 am

No big action until Monday at the earliest. We need a weekend catalyst as usual. This is just basing and consolidation.

PedestrianMay 10, 2017 at 6:51 am

If you watch the hourly platinum chart you can see it will probably take Wednesday, Thursday and Friday to set-up the base for a bounce. For some reason its easier to read than gold and silver at turns so the platinum chart comes in very handy. Keep your eyes on it. When plat moves up gold won’t be far behind.
http://finviz.com/futures_charts.ashx?t=PL&p=h1

1. dbozMay 10, 2017 at 6:56 am

   Time for a curve ball. The PM market is patterned. Good chart Gary, maybe this is the time it does not do this to fake the sideline sitters out. This is where it gets tough for sideline sitters. Do you sit and think a deeper pullback is coming? Or does it take off and just keep rising? For us OLD TURKEY holders, this is a nice surprise today. No need to try to time it. The only decision will be if we should sell after a bounce and possible deeper fall.

   Plenty of time to get long for sure but it is always hard to pull the trigger at the bottom as everyone always expects lower. Time will tell where we go.

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2. PedestrianMay 10, 2017 at 6:58 am

   Copper is also smack-dab on the bottom of its channel and ready to move up with other commodities.
   http://finviz.com/futures_charts.ashx?p=d1&t=HG

   That should be good news for TECK fans. But here’s a little warning. If you trace out the channels on TECK using the bottoms as your giude what you will see is that the top is a Head-and-Shoulders pattern rather than a double top as suggested by the FINVIZ chart.
   http://finviz.com/quote.ashx?t=teck

   That can only mean that any potential bounce coming in copper will not be significant if the H&S is to remain valid. So buy it with caution in mind and consideration that all the metals may have no more than a feeble relief rally in store.

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3. PedestrianMay 10, 2017 at 7:07 am

   Looks to me like Surf called this action correctly.

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1. GaryPost authorMay 10, 2017 at 7:15 am

   It does look like a DCL in miners. But I doubt we have a final ICL yet. Sentiment isn’t bearish enough.

   I’m going to say stocks drop down into a DCL and metals rally over the next 5-8 days. Then the longer term trends resume with the final ICL coming in mid to late June.

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1. RobertMay 10, 2017 at 7:46 am

   Would gold go much higher as well for the next few days or just miners? It seems only the miners are going up

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