Hey Tonto…These “Patterns and Sentiment” could hurt Silver!

 

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From the early 2000's to 2011, Silver continued to create bullish "Ascending Triangles" as it rallied from $4 to $50, highlighted in green above. After peaking at $50, Silver has started creating the opposite pattern, a "Descending Triangle!" 

Silver could be creating another descending triangle at the black arrow above. 

At the same time this pattern is forming, the lower right chart reflects that Silver traders have amassed a very large bullish position over the past couple of weeks. Currently positions are hitting levels where Silver has peaked in prices over the past couple of years.

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China near a multi-year bullish breakout? Help push S&P higher?

 

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Many major stock index's in the United States and Europe are either at all-time highs or near them. One sixth of the worlds population can't make the same statement though!

The chart below reflects that the Shanghai Index and the popular China ETF (FXI) has greatly under performed the S&P 500 over the past five years....buy more than 100%!

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The top chart highlights that the Shanghai index and FXI are both making another attempt to break from multi-year falling resistance lines at (1). At the same time the Shanghai index is setting on a support line that dates back almost 20 years, creating a multi-year pennant pattern that will come to an end pretty soon.  

Should the Shanghai index & FXI break resistance (which it hasn't been able to do in years), buyers could well start purchasing these under performers and push them a good deal higher. Could a breakout in China help push Europe and the States stock index's even higher?

Stay tuned....this is a very interesting "Resistance" point for investments that represent one sixth of the worlds population! Is a multi-year bullish breakout about to take place?  Pretty interesting price point for this region of the world and maybe the entire world!!!

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Bullish for Gold Miners if this is a “Head & Shoulders Top!”

 

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The above chart compares the New York Stock Exchange Index (NYSE) to the Junior Miners ETF (GDXJ). The ratio has created a strong move up over the past few years, as the stock market has performed tons better than the miners ETF.

The ratio may have created a head & shoulders topping pattern. Even if the pattern read is incorrect, the ratio does find itself at the bottom of a rising channel, as it test support.

What takes place at this support line could be very important for miners and where they will be at the end of the year!!!

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