Palladium Diamond

After breaking out of the triangle as expected in a Feb post, Palladium was volatile last month but traded above the triangle. The metal then formed a tiny 5 week diamond pattern, which is breaking out today confirming the initial triangle thrust. Implied target is $835. Stop @ 779.



Will Palladium & Platinum Follow Gold & Silver?

As you already know, both Gold & Silver have broken out of their consolidation patterns, but what about the other less talked about metals; Palladium & Platinum ?

Palladium is currently consolidating in a 4 months contracting triangle, which way the breakout will occur is still vague, so keep 765 & 685 levels on your watch list


Platinum is also trading in a triangle for the last 6 months, but what is interesting is the incomplete Head & Shoulders bottom that is forming inside which gives indication that a breakout to the upside is much more likely. Watch 1480 level.


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Metal Vs Miners

Silver Miners (SIL) broke out a 2 months Head & Shoulders bottom in mid January signaling that a reversal of trend was in place. Problem is Silver metal (SLV) did not confirm the pattern or the reversal in that case, instead the metal continues to trade in a tight range rectangle. A continued drop in equities in general plus a breakdown of Silver from its rectangle could spell trouble for SIL. A further sign of weakness is the throwback of SIL to test the H&S bottom neckline at 11.80.

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Shining Metal Play

Penny stock Golden Star Resources (GSS) has been saved by a support line from 2008, three times in the last seventh months. It has completed a small double bottom pattern by breaking through 0.57. Next resistance level is at 0.85, which if broken completes a larger basing pattern opening the way to an implied target of $1.25.






Bottom Breakout

Several metal, mining & energy stocks are rallying as of late such as Walter Energy & United States Steel shown early on in September. S&P Metals & Mining ETF (XME) has also been bottoming for the last 7 months and has broken out of a H&S Bottom today on 2x average daily volume. Implied target is $48

XME Daily

XME Daily


A Common Pattern On Rare Element

Rare Element Resources (REE) completed a 6-months H&S bottom after gapping from the neck level 2.50-2.58. Implied target is 3.40. Notice 3 bullish characteristics of this breakout: 1) It took out the 200-day MA, 2) Gap at the neckline (which could be filled & would offer an optimal entry point with a high reward to risk ratio) & 3) Increase volume at the neck level, 4x the avg daily. This may well be a reversal


REE Daily

Time To Accumulate Mining Stocks?

Mining stocks, along with Gold & Silver have been on a downward spiral lately and the reason I have not touched them is that there was no pattern to trade. Lately I have been watching the sector and one silver stock stands out having a decent Head & Shoulders bottom although slanting downwards. As shown below CDE is completing a 3-months H&S bottom with neckline at 14.64. A decisive close above the neck would trigger a possible target of 17.60. Check out this interesting link on mining stocks

silver, cde, mining, Coeur

CDE Daily