We can see 3 different patterns occur in 3 different instances on the 2hr chart for $GDX. The completion of all 3 seems to mark the beginning of a reversal of some undetermined direction. As far as the breakout direction is concerned, Symmetrical Triangles tend to break out in the direction that they began the pattern with.
Instead of viewing the chart as bearish as price does in fact fall rapidly into my proposed symmetrical triangle, the wave that preceded it was most certainly bullish. I've labeled the A-B-C-D-E pattern and I believe we are in the middle of our path towards our D wave. I believe we will be rejected once we touch the upper resistance line and fall down towards our E, marking the completion of our pattern. Watch for very low volume and for a strong price movement in either direction once E has been reached.
Conclusion:
Short term bullish
Medium term bearish
Long term Bullish
Instead of viewing the chart as bearish as price does in fact fall rapidly into my proposed symmetrical triangle, the wave that preceded it was most certainly bullish. I've labeled the A-B-C-D-E pattern and I believe we are in the middle of our path towards our D wave. I believe we will be rejected once we touch the upper resistance line and fall down towards our E, marking the completion of our pattern. Watch for very low volume and for a strong price movement in either direction once E has been reached.
Conclusion:
Short term bullish
Medium term bearish
Long term Bullish
www.youtube.com/watch?v=S_MhRHGf...