Charts based on Stockcharts log charts - line and candlestick - daily and weekly
Earlier this week I posted the above chart of the HUI, and alerted the Gold Eagle Forum. It shows, I think, the completion of an inverse head and shoulders pattern. This bullish outlook is supported by a number of other technical factors
1) The breakout from an ascending triangle.
2) Similarities between the previous up-wave in 2002 including Head & Shoulders and triangle, with yellow arrows marking then and now.
3) A similar angle of inclination of overhead resistance (pink lines) now and before breakout in 2002.
The next chart looks at some channel formations. Several parallel sets of lines of incidence can be drawn - I have shown 2 plus a box envelope.
1) The chart shows a clear expanding sinusoidal with a price objective for the top rail of the present channel in excess of 400.
2) It is not only possible to readily generate parallel line sets on this log chart, but EQUALLY SPACED parallel line sets at that.
The next chart uses a fan formation to generate divergent rails - forming a huge megaphone if you like.
1) Three smaller green megaphones are shown, corresponding to run-ups to peaks in the HUI.
2) This analysis is similar to the previous two in that it predicts a run up to the top rail in 2004.
3) The pantograph rails generate a succession of symmetrical diamonds.
The next chart combines some of the analyses used in previous charts - The diamond formation is again obvious, as are several sets of equally-spaced parallel lines.
It looks about right, does it not? Gann symmetry personified. A mirror image of the stock market indices over the last seven years, more or less. Of particular note are the long-term support/resistance channels (thicker black lines).
It was SMSC, who posts some rather splendid charts on the Gold Eagle forum, who alerted me to the possibilities inherent in the next chart - hence the joint billing....
Points to note (after you have finished admiring the view).
1) Inverse Head and Shoulders (shaded area)
2) The two down-legs of the 3-wave pattern are of equal length
3) It is projected therefore, by symmetry if nothing else, that the two up-waves also be of similar length. This leads to the above price and time projection.
In the next chart I have taken the analysis a stage further. Not so pretty, I'll grant you, but worth investigating I hope.
1) I have annotated where the chart crosses support/resistance with vertical dotted lines in colour-coded sets.
2) Each pair of support/resistance contacts has been placed equidistant from one of several central axes - again colour coded. Note that dotted double-headed arrows/dotted axis = Outside points of contact, whereas solid arrows/axes = Inside points of contact.
3) The purple inside and outside contact points generate slightly offset axes. The green ones are actually co-incident on one axis - hence no 'dotted' green vertical axis near the centre of the pattern,.
4) The blue axis was presumed to be the mean of other axes, and drawn in speculatively.
5) The blue axis now generates a time for the chart to hit the upper resistance rail - spring 2004.
No wonder Barrick have stopped hedging!
But it could be even worse for the short sellers of gold....
The above chart needs some explaining.
1) I have plotted an axis (almost vertical grey line) as the BEST FITTING LINE bisecting all of the shown support/resistance crossings. (For good measure I have included an extra level - the yellow arrow sets)
2) It turns out that this axis forms the shaft of a SYMMETRICAL ARROW pointing downwards - one of my favourite formations as it happens. This confirmation of proposed axis angle imbues it with additional credence IMO.
3) Having found a possible central pivot for the HUI I then proceeded in an orderly manner to project an equal blue arrow onto top resistance.
4) Did someone say short-covering?
This last chart is for entertainment purposes only.
Amen
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