Small Consolidation Pattern in PMs May Spark Big Breakout.

A little over three weeks ago already, the PM stock indexes enjoyed a strong rally, which led to a new short-term consolidation pattern at the most recent high. Today’s price action is now bringing that new pattern to life, which wasn’t there just a few days ago. This little two-week pattern is key to finishing up the bigger April and October 2024 rising wedges.

First, let’s update the daily chart for BTCUSD, which has again backtested the neckline, forming the possible blue rectangle as the backtest after the blue flag failed and is now part of the rectangle.

This longer-term weekly chart shows the H&S consolidation pattern on the daily chart above forming above the blue bullish expanding falling wedge. The stage is set for a big move once the price action trades above the top rail of the blue rectangle on the daily chart above.