By Scott Pluschau
The "Measured Rule" target was reached in a fraction of the time it took to form the pattern.
Gold is finding support at the major trendline on the Daily chart. Sometimes the supply can shut off temporarily when the measured rule target is reached. There is still potential for the flood gates to open up again below major trendline support.
(Click on chart to expand)
Silver lost support of a "Coil" on its Daily chart (right hand side below) and the "Measured Rule" of this pattern was fulfilled as well.
Silver is sitting on major trendline support now, which is a downward sloping trendline and this resembles a "Slide". "Waterfall" like declines have the greatest probability when these types of trendlines break down with volume. Will the supply shut off after the Coil measured rule was fulfilled? Time will tell, but I am ready for any reaction beforehand.
These patterns were laid out to subscribers in the weekday morning updates to subscribers before these breakdowns in advance. Stay in tune with the ever developing and changing patterns in price and volume each morning with the premium service.
Risk management starts with knowing where there are increasing probabilities for an increase in supply and demand. One can always re-enter a trade when the market does not meet expectations. Email for more information on the premium services that are offered.
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Email: ScottPluschau@gmail.com
