Comments on: GLD GDX ABX GG NEM Long-term Outlook (video)

By: RickySixx6

RickySixx6 — Tue, 23 Feb 2016 18:50:25 +0000

In reply to rsotc. Ok, so thats what i wanted to verify. At the end of the day, symmetry does matter. Thank you

By: rsotc

rsotc — Tue, 23 Feb 2016 18:14:59 +0000

@rickysixx6 Should the IHS scenario in ABX start to play out with the stock reversing soon, ideally you'd want to see the pullback end around that 38.2% in order to form nice symmetry on the pattern (as that would make the RS symmetrical with the LS). The better the symmetry on H&S and IHS patterns, the more likely the patterns are to play out. However, that's just one possibility. The main point that I wanted to impress with the Fibonacci retracement levels was to quantify just how much ABX (and GDX) could pullback without negating the recent bullish developments (i.e.- the breakouts above the primary downtrend lines & horizontal resistance levels in most of the miners following that divergent low on the weekly charts).

By: RickySixx6

RickySixx6 — Tue, 23 Feb 2016 17:53:44 +0000

Towards the end … you mentioned the possibility of a Fib retracement of 61.8% and of course 50%. Would a 61.8% still count as a head and shoulder move or would you only label it as such if it were a 50% pull back from the latest burst?

The reason why I ask is because I’m not sure if it matters much. Either way 50% or 61.8% retracement should be signs for people to back up the truck and load up one last time before the fireworks start over the next X years.