Oldtent Archives 2007 - 2008

Yesterday I posted a chart of SLV getting real close to breaking out of it’s bullish rising wedge. Well, today is the day of the breakout. Folks, this is not some little deal IMHO. It should mean an acceleration of the move that may start to go vertical. The breakout of this bullish rising wedge formation is also the same point on the chart the GR has his angled line of resistance being broken to the upside. Throw in the grains, oil or look at any of the commodities indexes to see that something big is starting to take place right in front of our eyes. There is a wave of inflation that will be bigger than anything we’ve seen up to this point and it will really start to get the attention of the average Joe and even some of the talking heads that won’t be able to deny it any longer.

Notice the angle of accent after the breakout of the 1st bullish rising wedge back in 2006.

The leader of the pack for silver is AEM. I have shown this stock from the early development of it’s bullish rising wedge. It is now breaking out along with silver which just adds to the significance of what lies just ahead.

AEM breaking out of a bullish rising channel, red trendlines, weekly look.

The monthly look paints a very bullish picture for AEM. The thin blue rail just above todays action should be our next stopping point where we sould expect some type of consolidation pattern to form. I think AEM may become the 1st PM producer to make it to $100.

GG is one of the stronger gold producers. Again, notice the 2 bullish rising wedges on the left side of the chart. You can see how the uptrend accelerated after the breakout.

Now for the frosting on the cake. The HUI has created a pattern that is similar to Platinum. I want to compare the 2 on a weekly basis so you can make up your own mind as to what maybe coming in the near future. The 1st chart is of the HUI. It shows the big triangle consolidation pattern that we broke out of back in Sept. of last year. After the breakout we then started to build our bullish rising wedge pattern which we are still in. All the other impulse legs ran straight to the next level in 6 months. Not so with our current impulse leg. we have built 2 small consolidation patterns, one on top of each other, that is creating a larger bullish rising wedge. At any rate this impulse leg is different than all the other previous rally legs on the HUI, which maybe implying a different type of rally leg for us. Normally there are 2 consolidation patterns that occur in a 5 wave up move. We already have 2 in place and haven’t even really begun to rally in earnest yet, just alot of chopping around so far. Maybe we are getting our consolidations out of the way early on, and the move to come will be unencumbered with a near vertical look to it.
The weekly HUI, triangle and bullish rising wedge.

Platinum triangle and bullish rising channel.


Folks, these are going to be some exciting times coming up in the not to distant future, so if you don’t have your seatbelt on you better think about getting it on before things start to get crazy.
No one really knows for sure what the future holds but the charts can give us some kind of roadmap of what may lie ahead.
All the best…Rambus