Quick Market Update
I'm working on a few new charts tonight for the PM complex, so just a quick update.
The analysis in the Wednesday Report titled "Precious Metals on the Cusp: Short-Term Low in Sight" is still valid, which I'll go into more detail about in the Weekend Report.
The very first chart in the Wednesday Report was this daily chart for the CDNX, which was testing the top rail of the bullish expanding rising wedge, the right shoulder of the much larger multi-year inverse H&S bottom. So far, we have a perfect backtest in place.
This long-term weekly chart for the CDNX, where many small and micro-cap stocks are located, has now spent the last two weeks above the top rail of the 2021 bullish expanding falling wedge and the smaller right shoulder, bullish expanding rising wedge. Today, the CDNX closed right on top of the 2021 bullish expanding falling wedge.
As you can see, the CDNX has worked its way above the three strongest resistance lines: the top rail of the 2021 bullish expanding falling wedge, the top rail of the blue bullish expanding rising wedge, and NL2. If the CDNX wasn't ready to move higher, it would never have broken above those important resistance lines.