AG Update…

We can now add AG to the other precious metals stocks that have broken down from their topping patterns. This morning AG gapped below the bottom rail of a 5 point diamond top pattern that has been forming for several months now. The chart below shows you exactly how a breakout looks. Note the breakout gap and the long bar that shows today’s price action. Its still early in the day but you can see the volume bar at the bottom of the chart where I put a red arrow that will probably be much bigger by the end of the day. Its possible that AG does a backtest to the bottom blue rail before the move down begins in earnest. No guaranteeĀ  tho. Again another surprise to the downside for a precious metals stock which isn’t indicative of a bull market.

ag