Gold & Silver Double Bottoms

silverdoctors.com / By Morris Hubbartt / March 10, 2013

In the case of gold, the consolidation has gone on now for nearly a year and a half. The larger the base is, the greater the rise out of it.
There are actually two triangles in place, and gold has just staged a near-perfect pullback to the top of one of them.

Note the trade signals on the chart.  Silver has a double bottom pattern very similar to the one I showed you on the gold chart, and $29.15 is the neckline.  A move over the neckline should produce a rise to $30.43, and begin a trending move to the $40 area!

• The stock market has continued higher.  On Tuesday, I issued my largest profit taking signal to date, at 14,260. Technically, the market needs a correction. The longer the rally goes without one, the greater the risk of a substantial decline, or even a crash.

• My view is we will get the correction.  It will likely happen sooner rather than later. Key technicals are not confirming the recent high for the move.

• The action of the RSI oscillator is concerning.One indicator that is flashing what could be called a “screaming” sell signal, is the CCI.  There is a spike to the 250 level, in play now.

• The bottom line is that there is a red technical sky for Dow sailors!

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