Kimble Charting Solutions Blog

Does it pay to follow breakouts?

Posted by Chris Kimble on 04/28/2011 at 5:54 am; This entry is filed under gold, silver.

If an investment is up almost 100% in 4 years, does it still have room to move higher? 

Gold rallied almost 100% from 2001 to 2005, then notice what happened in the chart below, after it broke above channel resistance that had been in place for over 20-years...

 CLICK ON CHART TO ENLARGE

Gold rose almost 200% from 2001 to 2010, yet what happened when it broke above resistance at the $1,000 level?  Another 50% gain since the breakout!   Has Silver acted any different when it breaks resistance?

CLICK ON CHART TO ENLARGE

Gold is up almost 100% from its 1980 highs. How much above its 1980 high is Silver?  IT ISN'T!!! 

Silver is now facing resistance that has been in place for over 30-years.....Wonder what investors should do if Silver happens to break above resistance line (3) in the chart above?

 

 

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