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CRB created an inverse Head & Shoulders pattern at (1) and rallied to a Fibonacci 261% expansion level at the top of a bearish rising wedge…results after this took place - CRB broke resistance and a massive decline took place.
The CRB looks to have done the same thing at (2), per creating an inverse Head & Shoulders pattern at (2), rallied to its 261% expansion level at the top of a rising wedge.
Shared this chart to Premium Members last week that the “Power of the Pattern” was suggesting a greater than a 65% chance of a very large decline in the CRB index was about to take place!
I shared a few days ago that Crude Oil was pushing support to its limits … (see post here) Odds go way up that Crude Oil could work its way towards $60 if the top of the channel dating back to 1983 is taken out!
See update on Crude oil’s support test below!
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If the “Power of the Pattern” is correct in the top chart… the CRB & CRX index and Crude oil will witness some pretty strong selling pressure.
King Dollar on a Weekly basis has a 74 period Cycle Low being put in now
Aaron…yes. On a 30-year overvaluation perspecitve, Silver remains very high, which would me a big risk!
See this chart that helped us short silver at $48! Members did a market neutral spread at this time Aaron, per went long gold and short silver (ZSL). This MN strategy worked really well as ZSL was up over 40% in a weeks time.
https://www.kimblechartingsolutions.com/wp-content/uploads/2011/05/goldvssilverrelativestrengthmay15.gif
Hi Chris,
In your opnion,is Silver poised to follow the CRB to the downside?
Thanks,
Aaron