by Rambus, Gold Seek:
Every now and then I’ll do a post on “What If ” something is changing or not following along with what the original Chartology was suggesting. I have to keep an unbiased opinion and follow what the charts are saying. Sometimes it’s easier said than done. I know many of you were surprise when I exited the Kamikaze Stock last Friday. Believe me it’s not what I wanted to do but the short term charts are suggesting there maybe be a little more upside price movement left in the PM stock indexes.
Lets start with the daily chart for GDX which I showed you last week that has the 5 point triangle reversal pattern. I pointed out the the GDX was bouncing between the double bottom hump at 20.20 and the bottom rail of the 5 point triangle. This went on for eight days or so with no conviction either way. I said this is where we’ll see how strong the bulls are. As long as the price action stayed below the bottom rail of the 5 point triangle the bears were in control. It doesn’t look like a big deal on this daily chart below but you can see the GDX closed above the bottom rail of the blue triangle telling me the bulls may have more strength than I gave them credit for.
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