Going bigger -- much bigger -- takes us to AngloGold Ashanti (AU). Unlike PKX and LODE, AngloGold had been forming the bearish counterpart to the ascending triangle: the predictably named descending triangle. But the pattern never completed. Instead, QE3 pushed AU to break out of the downtrending resistance level that had been forcing shares closer and closer to $31 support.
That aborted bearish setup is as good as a bullish setup as far as I'm concerned.
The buy signal came earlier this month when shares broke out, but it's still a buyable trade at this point. Momentum, measured by the 14-day moving average, has been trending higher since late April, when shares were still falling. The fact that the RSI line remains in an uptrend points to higher prices yet to come -- momentum, after all, is a leading indicator of price.More gunshy traders can wait for the 200-day moving average to get broken for a second trigger signal.
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