The Precious Metals Markets Big Picture

by Rambus Chartology

When there appears to be a critical inflection point in any market it is always important to go back and look at some long term charts so you don’t lose sight of the big picture. The big picture can also tell you if your long term view is still accurate or it can let you know if there is some deterioration taking place. Always keep in mind in a bull market the surprises will come to the upside and in a bear market the surprise will come to the downside.

Lets start with the history chart for the HUI which shows all of its chart patterns both consolidation and reversal patterns. The left side of the chart shows all the consolidation patterns that formed the first impulse leg up after breaking out from that massive unbalanced H&S bottom in 2001. Phase 1 of the secular bull market ended at the head portion of the 2011 H&S top. The double bottom low in early 2016 actually marked the bottom of the cyclical bear market.

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