Tuesday, March 19, 2013

Silver is "Coiling" for a big move... Platinum and Copper lost major trendline support

The Precious Metal Platinum lost trendline support today on a surge in volume.

(Click all on charts to expand)


Silver is building a ton of energy on the Daily chart the past month.  The pattern near term is "Coiling", and these patterns can crush those with leverage and on the wrong side of an explosive move.  The breakout to the upside would take place above major support, and could help fuel a reversal and new trend higher again, but a breakdown from this "Coil" might crash through major horizontal support. 

The larger degree pattern in Silver on the Daily resembles an Unorthodox Bearish "Head and Shoulders" pattern with a raised "Left Shoulder".  An "Igniter Move" breakdown in the downward sloping trendline/neckline could send Silver on a "Waterfall" like decline to the low 20's. 

I would like to put away some Silver for the long term and so I don't mind seeing a waterfall decline. 


Also in the metals is the continuing divergence in the Industrial Metal Copper, where one would logically think that demand for Copper would be strong in the face of a raging Bull Market in Equities across the developed and emerging economies of the world.

Equities didn't take long to fill their gaps yesterday, but Copper kept heading south below Major trendline support.


Such interesting times the world is going through and the charts are one way to get a good look at it all.  Join one of the premium services to stay in tune with the patterns of price and volume.  The next issues begin the weekend of March 31st.  Email for interest.

Twitter/ScottPluschau
Email: ScottPluschau@gmail.com
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4 comments:

  1. Good article with some valid points however I question the head and shoulder you drew on silver. I've never seen a H&S where the shoulder, especially the left one is higher than the "head". Is this even possible? Please explain. Thanks

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    Replies

    1. The Triple Top formation is really an unorthodox "Head and Shoulders" with the "left and right shoulders" raised to the level of the "head".

      The Broadening Top formation is really an "unorthodox" Head and Shoulders with a raised "right shoulder".

      The Head and Shoulders, Triple Top, and Broadening Top, have one thing in common... they are all major "five point" reversal patterns.

      And the pattern in Silver resembles a "five point" reversal pattern. I call it an unorthodox head and shoulders with a "raised left shoulder" but the theory is the same. A break in downward sloping trendline/neckline can open the flood gates of supply.

      This is not a prediction, just something that I am paying attention to for opportunity.

      Silver Bulls want to see a breakout to the upside of the near term "Coil", that is for sure.

      Thanks for the comment Frank.

      Scott

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    2. Thank you for the reply Scott. Much appreciated. I"m just not used to seeing these patterns called H&S tops but I do see your point.

      Regards,

      Frank

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