SIG (Signet Jewelers) will trigger an objective short entry on a break below this bearish rising wedge pattern. Should SIG trigger an entry soon, I have three current price targets (T1–T3), with two potential additional targets that might be added, depending on how the charts of both SIG & the broad market develop going forward.
SIG daily Oct 9th
From a fundamental perspective, it’s not very hard to imagine how the soaring cost of gold, silver, & platinum is inflating the cost of jewelry. That’s either going to result in demand destruction (investors are buying the precious metals as inflation & US Dollar debasement hedges more so than demand for jewelry) and/or margin compression for jewelers (lower profit margins as they find it increasingly difficult to pass those price increases along to the consumer). Daily chart above.