The trip to the Moon has begun. This is our first trip to the Moon, so a few bumps along the way should be expected. At this time we should be buying the dips in Gold and Silver. NEVER short a Bull Market. And NEVER NEVER short a short squeeze.
Our Gold chart above shows the development of a Flag Pattern:
Flags are short-term continuation patterns that mark a small consolidation before the previous move resumes. This pattern is usually preceded by a sharp advance or decline with heavy volume, and marks a mid-point of the move. To be considered a continuation pattern, there should be evidence of a prior trend. This move usually represents the first leg of a significant advance or decline and the flag/pennant is merely a pause.
A flag is a small rectangle pattern that slopes against the previous trend. If the previous move was up, then the flag would slope down. If the move was down, then the flag would slope up. Because flags are usually too short in duration to actually have reaction highs and lows, the price action just needs to be contained within two parallel trend lines.
For a bullish flag or pennant, a break above resistance signals that the previous advance has resumed. The length of the flagpole can be applied to the resistance break or support break of the flag/pennant to estimate the advance or decline.
The "flagpole" for this flag measures 46.
Our Silver chart above speaks for itself.
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