Wednesday, February 6, 2013

History doesn't repeat...

.... it rhymes.

The thing I like about technical analysis is looking for patterns that I've seen before. Since the patterns reflect the emotions of the traders as related to the price of the underlying security I expect traders to act the same way as they did before. Not always, since there are always some sharpies out there to take advantage of those predictable.

But looking at the GLD chart I am struck by the similarity of the price action to the pattern some months earlier.....

In particular the rounding action of the bottom. I find that the round bottoms are the most desirable., oh, you know what I mean.

Silver is holding up well also.... Coils can go either way so be careful!


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