In previous blog postings I have laid out the case for 1230 to 1280 being the next level of significant support and 850 to 1050 likely being bedrock generational support. However, a few other measurements seem to be pointing to the 1150ish level as possible support as well.
If the price actually falls to this level, I'll be on the look out for possible reversal patterns using Elliot Waves, Candlesticks and the QG3.
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Silver - Unlike Gold, Silver has yet to back test even a small portion of it's break-down. As positive divergences develop in the Oscillators (RSI(14), MACD), I suspect that this back test of the 26.00 level may be realized, possibly inside the next few months. But I highly doubt the first back-test will breach 26.00, a back-up for another run at it later (several months perhaps) is more likely to breach it. A contracting ending diagonal pattern (orange) would be very helpful in gauging a potential major bottom.
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HUI (miner index) - is starting to touch the top of some major LT support. Any further down and stock prices will reach into 'ridiculous' territory. Several senior dividend paying mining stocks now have P/Es in the teens and even single digits. I don't suspect this condition to last for very long.
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USD/CHF - Produced a text book 'Triangle/Thrust' topping formation leading a downward move into what is likely to be a larger ST consolidation.
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USD/JPY - Produced a text book Ending Diagonal pattern (expanding type - distributed top)
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AUD/USD - Elliot Wave and Candlesticks can be useful for identifying ST tops and bottoms, But the QG3 is designed to catch and land the 'big fish'. Our current Short position in the Aussie is likely to net a 'lunker' of several hundred ticks.
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Good Hunting,
Quad G
