From this morning’s update: “We noted a potential bear flag and if today ends up being what the pre-market implies, then it would go from a potential to an actual bear flag.”
HUI remains in a potential (not actualized) weekly bear flag with 50 minutes to US market close. So I suppose that means the precious metals can rally on Monday and still remain in the potential bear flag pattern and a bearish structure.
What is the upshot? Well, I can only speak for myself in that I plan to continue trying to pick off quality when it reaches value status. I’ll trade it, as I did AKG on a pop after buying it at net cash. But my plan is to also very slowly accumulate this ridiculous environment and stop micro managing every twist and turn. The market has proved smarter than me, speaking as a trader. It is not smarter than me speaking as a patient value buyer who is prepared to endure some level of draw down on the way to what I think will be an excellent intermediate trade on a new bull market one day.
People who want to strictly manage risk should respect the bear flag pattern on HUI and the ‘bear market’ resistance on gold and silver at 1524 and 26.10 respectively. We’ll break down (no pun intended) the charts this weekend. Speaking of which, have a good one!