Yes, USD looking good at the moment. I want to see gold/silver
roll over for confirmation. Silver looks to be forming a H&S
top on the daily spot chart. A break below $17 increases this
possibility and a breach of the neckline at $16 gives a target of
$14. Still too early to call! I note that the GDX has put in a top
reversal on the daily. Evening Star! Very bearish! I also note the
GDX is forming an expanding triangle. If we get one last rally in
the indexes that does not produce a new high for the GDX then that
may be a great short!
I should add that it is better to confirm a top or bottom rather
than race in suspecting one. The wave 2 correction from a top or
bottom normally retraces 50-62% of wave 1 and can retrace up to
100% meanining a potential double top/bottom. What I am saying is
that getting in during wave 2 normally gets you in at the best
price unless you fluked the exact top/bottom. For every top/bottom
you get right there will be ten you get wrong.
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
Yes, USD looking good at
US Dollar
Posted by phillw on 12th of Nov 2009 at 02:37 pm
Yes, USD looking good at the moment. I want to see gold/silver roll over for confirmation. Silver looks to be forming a H&S top on the daily spot chart. A break below $17 increases this possibility and a breach of the neckline at $16 gives a target of $14. Still too early to call! I note that the GDX has put in a top reversal on the daily. Evening Star! Very bearish! I also note the GDX is forming an expanding triangle. If we get one last rally in the indexes that does not produce a new high for the GDX then that may be a great short!
I should add that it is better to confirm a top or bottom rather than race in suspecting one. The wave 2 correction from a top or bottom normally retraces 50-62% of wave 1 and can retrace up to 100% meanining a potential double top/bottom. What I am saying is that getting in during wave 2 normally gets you in at the best price unless you fluked the exact top/bottom. For every top/bottom you get right there will be ten you get wrong.