A Chartist’s Toolbox: Bullish Rising Wedges and More.

Tonight, I would like to show you some precious metals stocks that are not in the PM Stock Trades Portfolio, that are still in consolidation mode or have just recently broken out of a trading range. Some of these PM stocks have been shown in the forum, so I thought it would be a good time to update a few of them.

Before we look at them, I’ll do a quick update on the PM complex, starting with the daily combo chart we’ve been following, showing the October 2024 triangle consolidation patterns. Since the breakout from the 2024 triangle, the price action has been consolidating the breakout move, which is now going on three weeks. Three to four weeks is about the right amount of time for a small consolidation pattern to form, which shows up in a strong impulse move.

Consolidation patterns that slope up in the direction of the uptrend or down in a downtrend are the same as any other consolidation pattern, but they tell you the trend is very strong because the pattern is making higher highs and higher lows. You can think of these patterns as a running correction, giving sentiment time to cool down, but the price action doesn’t actually correct.

As you can see, most of the small blue consolidation patterns are sloping up in the direction of the uptrend, with the exception of SIL, which is forming your more traditional bull flag or wedge.

This monthly combo chart starts at the 2000 bear market low and the beginning of the secular bull market for the PM complex. The main focus of this chart is the 2020 bullish expanding falling wedge, which we had to endure during its formation. I just wanted to isolate the 2020 bullish expanding falling wedge so you can better understand how it fits into the big picture, unencumbered.