Thursday, 19 February 2015

Dow sitting atop 18 year old bearish megaphone

Monthly chart shows that the Dow is sitting atop an 18 year old bearish megaphone. If (if!) the market breaks lower through the nearby trend line, that would indicate the beginning of a swift and lengthy decline. Failing that break lower, further upside is possible. If we see further rally, at what point would the bearish implications of the megaphone pattern be proven false? That's a hypothetical for now, certainly while the 2014 high remains unbeaten.

Gold and Silver rallying from trend line support?

Daily chart shows Gold rallying from trend line support.

Silver's next, where the rally is more tenuous, hence the question mark in this post's title. Channeling up, but only if last night's low holds.