It looks like gold & silver have formed large inverse head & shoulders patterns that are now in backtest mode. Once the share price hits the trend line, buyers may rush in. Price targets are measured from the bottom of the head to the trend line. Price targets for GLD, SLV & AGQ are 124, 21.45 & 69.3, respectively. Associated price gains from the trend line would be 28.3%, 146.2% & 223.8%, respectively. For SLV's chart, certain patterns are associated with improved (e.g. a downsloping neckline & a breakout gap) and diminished performance (e.g. the presence of a backtest & higher volume for the left vs. right shoulder)
Hey Attitude,
ReplyDeleteI'm looking to add more SLV if we see 14's again this week and next. Seems to jive with your trend line analysis. Are you bullish SLV and bearish the dollar?
I'm still holding ZSL but am concerned that I will need to shift to AGQ pretty soon. The inverse Head & Shoulders is not a perfect classic since it is not at a market bottom. I'm watching for a completed backtest for AGQ. If you look at the bottom chart at http://instigator928.blogspot.com/2009/09/tna-candlevolume-eom.html you will see pairs of numbers. These are based on the sum of calculations based upon daily volume, prior close, open, high low and close prices for the first and last leg within each sections bordered by the vertical blue lines. I calculate the sum for the 1st leg and keep a running tally for the final leg. I have one going for TNA 7 one for AGQ. The AGQ 9/3-9/16 upleg was 189. So far the backtest leg is up to 91, so I think silver will fall a bit more....we'll see.
ReplyDeleteUUP has a limited "bang for the buck," (please pardon the pun) so if I went long the dollar I'd probably buy EUO. I decided not to break my brain over currencies because of the limited upside using ETFs. My gestalt is that the dollar may rally.
ReplyDelete