To view the big picture for gold, please click here now. Gold has been consolidating for almost a year.
Two key symmetrical triangles have formed, and they appear to be acting as the “firing pins” that will help gold begin a major price advance.
Please click here now. You can see that gold pulled back towards the middle of the green triangle, and then quickly bounced higher.
As of this morning, gold is also trading above the larger dark blue triangle, which technically confirms a breakout. That breakout should produce serious follow-through to yesterday’s price action, for the rest of the trading week.
Please click here now. Is that a chart, or a piece of sculpture created by Michaelangelo? I would argue that the GDXJ chart qualifies as “chart of the year”.
Many individual junior gold stocks are coming to life, and this GDXJ chart suggests a virtual price geyser is imminent. Note the small but beautiful head & shoulders bottom. It is a complex pattern, featuring two heads.
The neckline of that pattern sits at about $20.30, denoted by the thin black line of HSR (horizontal support & resistance).
GDXJ had a great day of trading yesterday, but Canadian markets were closed. Many hedge funds engage in what may be called “nefarious” shorting of junior resource companies on the CDNX exchange.
When Canadian markets open today, I want to see GDXJ blast up through the neckline and over the green downtrend line.
The two green trend lines denote an enormous bullish wedge pattern. The GDXJ chart could be termed a “snorting bull”. The chart showcases a double bottom pattern, a head & shoulders bottom, and a bullish wedge.
I don’t think that junior gold stock investors could ask for a more bullish chart than this one.
The amount of pain endured by the average gold stock investor in this crisis rivals that endured by 1990s technology stock investors. The difference is that you are likely about to be rewarded in a very big way!