Below is a chart of our ever expanding triangle that has been forming for a year now. These type of patterns give you alot of false buy and sell signals by breaking out above the previous high only to reverse back inside the pattern with the same thing happening at the bottom of the trading range. Whipsaw city. What we do know is the expanding triangle is complete after it hit the top rail at point #5. You can see the double top at point 5 that led to our last leg down that finished at the bottom rail with a slightly lower low than the previous low back in June.. Our latest bounce off the bottom rail took us to the center of the consolidation pattern, dashed blue rail, where the rally petered out. In a big trading range like we are in you can see how most reversals within the expanding triangle were accompanied by some kind of reversal pattern, such as a H&S or double top or bottom. This is one reason I would like to see us touch the bottom rail one more time to complete a rather large double bottom that would call for a move all the way back to the top of the pattern. What we want and what we get can be two different things. Bottom line is we know the boundaries of the trading range and can act accordingly.

HUI daily look.

Yesterday we came within .14 of the all important bottom rail of our triangle that has yet to tell us what kind of pattern it is yet. This mornings bounce came at the right time and place to keep the triangle reversal pattern , to the upside, in play. So the chopping continues within the boundaries of the triangle. By hitting the bottom rail yesterday the triangle was completed as we now have 4 confirmed reversal points. The big question remains, is this triangle a consolidation pattern or a reversal pattern to the upside. Stay tuned.

SLV daily look.

The daily chart for SLV shows our triangle consolidation pattern forming. A few days ago I mentioned I would like to see the 29 area hit which was the bottom rail of the triangle. Today we hit 29.14 and we are getting a bounce. I can’t emphasize how important this bottom rail is for SLV and the rest of the PM complex. If the bottom rail can hold and we rally up thru the top rail at some point in the near future this triangle pattern will be a reversal pattern. Right at this very moment it is still classified as a consolidation pattern. Patience is a hard rule to follow sometimes.

SLV daily look.

This is an update of the 60 minute look at the H&S top that broke down yesterday. This H&S pattern has price objective down to the 480 area which will put us right on the bottom rail of the one year expanding triangle. Things are getting interesting.

HUI 60 minute look.

Fully here is an update of the15 minute chart of GLD I posted earlier this morning. We have broken below the bottom trendline and the backtest is now in progress. What we want to see now is for the backtest to fail and the decline to begin in earnest. If GLD gets back into the triangle then its back to neutral.

GLD 15 minute look.

Hi fully. Here is the 60 minute chart of SLV you were asking about. You can see we have completed 4 reversal points so far and we are now sitting on the bottom rail. You can also see a potential H&S pattern right in the middle of the triangle that broke the neckline this morning. Right now we are doing the ping pong move between the neckline and the bottom rail of the triangle.

SLV 60 minute look.

This daily chart of the HUI shows our expanding triangle formation pattern that has been in place for close to a year now. Expanding triangles can break either way just like any other pattern. We are approaching the bottom rail again which will be the 4th touch. Just like gold and silver the HUI is entering a critical test. The bottom rail has been a good place to buy precious metals stocks over the last year. The bottom rail is also your line in the sand. If you  are holding precious metals stocks you can set a sell/stop below the bottom rail for whatever your risk tolerance is. I’ve labeled the reversal points in red numbers and as you can see we have 5 completed reversal points now in play making this a reversal pattern if the bottom rail gives way.  The 480 area is most critical to hold.