We often write about the different patterns in the markets including the simple fact that all charts are the same and all patterns repeat themselves. This is a hard concept for many to grasp but in its simplest form we can look at any chart and interpret the message without knowing the stock or commodity we are trading.
Looking at Gold and Silver, we are seeing an instant replay of the pattern that started this recent bull run. Congestion, breakout, congestion, and breakout again. Looking at the chart it, appears we are looking at a staircase.
The strongest bull markets are just like what we are seeing in Gold and Silver, they are grinding higher. We don’t see panic selling nor profit taking. What we see is new money buyers keep showing up, selloffs are shallow. Until this pattern changes the bull market is on and expectations are for a long term continuation.