Most of the markets were a bit tentative going into last Friday, but by the end of the day, many charts began to show their true nature once again, which we’ll look at tonight. Most were just needing a catalyst to complete their most recent small trading range. We also know that September is generally the weakest month of the year, which is just around the corner, but we also know that “the only rule when it comes to the markets is that there are no rules.”
We’ll also look at some before and after charts for the PM complex to see if the Chartology we’ve been following has been guiding us along the right path. It’s easy to call the end of a consolidation pattern after the fact, but it’s a different story while it’s forming in real-time.
Let’s start with the daily chart for BTCUSD, which is testing its neckline for the second time, forming a possible rectangle as the backtest after the bull flag failed and now is part of the larger rectangle.