Cryptos are taking a massive hit, the stock markets had a tough couple of days and the dollar is staging a slight bounce, and bonds and yields look to be at a turning point. So where does that leave PM's ? Looking at the chart below, I still think we're in the time frame for a breakout above the long running resistance line in the next few weeks. Support is down near $1200, so a drop to that level is certainly not out of the question. Those of us holding mining shares would need a change of underwear if happens though. After looking at the HUI chart, I have no idea just how low it would drop, but I don't want to find out.
As I've already said, I have a strong 'gut' feeling that the miners aren't going to get going until we see that clear breakout, with a move north of $1400.
It’s interesting that the angle of ascent from the start of the move to now, is the same as it was when we built out a very similar chart pattern in the 2007-2009 period. That lasted about 2 years as well. Are we about to breakout and see the angle increase like last time ? Depending on the chart and scale you use, the angles are different, but they match (then and now). Anyway, I just find it curious, and can’t see why it would repeat exactly the same, but we’ll see I guess.
