GSS - Sector: Basic Materials---Industry: Gold & Silver

[eliteG]

It reminded me of dealing with nested loops and data morphing in school.  Luckily I didnt pay to much attention to that and way more attention on learning stock trading.  They didn't have that major(stock trading).   

When you were talking about the nested patterns I was already writing the pseudo-code in my head:

Falling[ascending triangles x 2]wedge = big boom

Will keep an eye on gold 

That "Morphing", must be what we old southern boys call one of them $2 words.

setravis - thats just hilarious, lol 

[Melf Elf]

That "Morphing", must be what we old southern boys call one of them $2 words.

setravis - thats just hilarious, lol 

That is hilarious!  I'm glad Setravis put me wise, in case anyone ever tells me to "Get morphed!"  I'll understand that I'm probably not going to look much like an elf when they get finished with me 

[setravis]

LOL...Guys.
I ran across your post,while I was just sitting here so nested in my patterns.
All this has forced me to breakout my morphology book and get caught up.
Just when I think I'm educated.....my morphed up mind forgot the pseudo-code.
Heck guys....when i was in grammer school..many moons ago.The teacher tried to tell me,
That pie are square, I stood up and said no teacher....Pie are round.

[Melf Elf]

No breakout this week above the 3.37-3.32 neckline. 

Instead, GSS broke below the up trendline on eliteG's chart above.  That could be a blessing in disguise.  If GSS goes down and forms a right shoulder near its 50DMA (currently 2.78), or validates and bounces off the up trendline (currently 2.70) from the May 3 low, we could be looking at a real nice percentage gainer here on a breakout above the 3.37-3.32 neckline, from a bounce off 2.70-2.77 support.  A pattern breakout would put about 4.42 IN PLAY.

Keeping an eye on this one.

http://ts-lc.sc8.finance.lycos.com/1120032675828?User=demo&Pswd=demo&DataType=GIF&Symbol=AMEX:GSS&Interval=D&Permission=1000&Ht=400&Wd=600&Display=2&Study=MA&Param1=50gss&Param2=0&Param3=&FontSize=10&LocaleID=0x0409

[Melf Elf]

I need to change the name of this thread to: GSS - FOUR Bullish Patterns.   

Instead of heading down to the 2.70-2.77 area, yesterday, GSS rallied back to eliteG's broken up trendlne.  The prior day's hammer becomes the fourth data point of a bull flag that has been forming since the mid-June high of 3.32.  That's bullish pattern formation #4.

A breakout above the 3.37 - 3.32 neckline should be a good one, with four bullish patterns nested within the 5-month Inverse H&S pattern. 


http://ts-lc.sc8.finance.lycos.com/1120032675828?User=demo&Pswd=demo&DataType=GIF&Symbol=AMEX:GSS&Interval=D&Permission=1000&Ht=400&Wd=600&Display=2&Study=MA&Param1=50gss&Param2=0&Param3=&FontSize=10&LocaleID=0x0409

[Melf Elf]

GSS had a gap up breakout above Bullish Pattern #4: The June Bull Flag.  It pulled back to 3.15, and currently is back above the bull flag breakout, currently at 3.21 BID...3.22ASK, up $0.02.

http://ts-lc.sc8.finance.lycos.com/1120032675828?User=demo&Pswd=demo&DataType=GIF&Symbol=AMEX:GSS&Interval=D&Permission=1000&Ht=400&Wd=600&Display=2&Study=MA&Param1=50gss&Param2=0&Param3=&FontSize=10&LocaleID=0x0409

[calven]

Here are the charts I posted on the board weeks ago... (GSS/LF/ VCLK)

http://www.3stocksonfire.org/trading/index.php?topic=654.0

[Melf Elf]

Here are the charts I posted on the board weeks ago... (GSS/LF/ VCLK)

Oops...just saw your post.  My apologies, Calven.  I joined the board a few days after your post, and didn't see it.

GSS still is working on Pattern #4.  I thought I'd review it because the nested patterns have the potential to be very explosive if we get a breakout above 3.32, and because eliteG created a monster when he taught me how to post my "pizza" charts.     I hope the chart isn't too cluttered to read:

[Michael]

Hi Melf elf and Calven,

Here is another take on the technicals.

I am not sure what the name of the pattern is, but I call it the money in the bank
pattern 

Resistance seems to be above 3.5 and we just need a reversal in gold price to get
there.

[Melf Elf]

I am not sure what the name of the pattern is, but I call it the money in the bank
pattern 

I like  the"Money In The Bank" pattern.    On my screen right now, GSS is $3.15 BID...$96.00 ASK.    That would put some money in the bank! 

[Melf Elf]

So far, NEM is getting the job done today (see my post in that file from this morning).  NEM is up $1.00, and above the channel.

GSS still is in this 4th Bullish Pattern, the bull flag.  It's up $0.10 at 3.09 BID...3.10 ASK.  Note that there are three hits at the top of flag, validating it as resistance.  A breakout above that (for today, about 3.16...it declines daily) should be signficant.  If GSS takes out the top of this bull flag, that measures to about 3.36.  The key number for a breakout of all four patterns is 3.33.

Note that the last tag of the bottom of the bull flag was at the top of the Ichimoku Kumo (cloud), which provided support.  GSS has been "walking on top of the cloud" ever since.

If you scroll back throught this thread, I have charts with the other patterns.  You might want to keep this one on your radar.

[Michael]

Hi Melf,

Thanks for your chart updates (applauds).

Nice move by gold today. A little more of that and I think we will break out of the bull flag.

Mike

[Melf Elf]

Hi Melf,

Nice move by gold today. A little more of that and I think we will break out of the bull flag.

Mike

Sure would be nice 

This has taken awhile to develop and there's always the chance that it won't break out at all, of course, but after an 18 month downtrend, I like the fact that over the past six months,  GSS has built these four nested bullish patterns to go up against all of that overhead resistance on a breakout.

[Melf Elf]

Nice move by gold today. A little more of that and I think we will break out of the bull flag.

Mike

Well, Mike, GSS closed right at the top of the bull flag, for a 4th tag of that trendline. 

On any weakness though, Friday's candle is a hangman.  The tail (3.09 - 3.13) is exactly twice as long as the real body (the open and the close were two points apart...3.13 and 3.15).  If Friday's low of 3.09 gets taken out, GSS could head back down toward the bottom of the flag.

What has me thinking that GSS still might not breakout here is the fact that NEM's high on Friday was right at DOUBLE resistance for the second day in a row 

I don't want to over-emphasize NEM.  GG, for example, made a new 52-week high on Friday while NEM stalled out at resistance, but it would help out the gold stocks in general, I think,  if NEM could take out 38.80-38.09 resistance since it's so heavily weighted in the gold stock indices.  I'll post an updated chart in the NEM folder.

[Michael]

Hi Melf Elf,

It seems that the analysts are changing their view on the outlook from being short term bearish and long term bullish to both short and long term bullish:

LONDON: Gold prices will rise this year and next on renewed dollar weakness, strong investment and global security jitters that will confirm its status as a haven for money, a Reuters poll has showed.
The global poll of 30 analysts and senior traders arrived at a median average gold price of $433.25 per troy ounce in 2005, up 0.75% on a similar poll conducted in January and up 4.8% on 2004's average bid price of $413.56.
The rising trend was seen spilling into 2006, with analysts predicting an average of $450, a sharp reversal from the January poll, which saw prices falling back to $4130.
The highest forecast for next year came in at $500.
"Under our broader economic scenario of slowing growth, the dollar is likely to come under renewed pressure in the second half of this year and that should lead to gold surprising on the upside," HSBC metals analyst Alan Williamson said.

From other sources it seems like the London Bombing and the Yuan revaluation will also have an impact.

All in all we should see a positive week for GSS.

For a discussion on gold and gold stocks see the GG thread: http://www.3stocksonfire.org/trading/index.php?topic=1135.msg11240#msg11240