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The weekly gold chart below shows the wedge pattern that formed in the past two years.
The U.S. Dollar Index chart below shows the possible wedge pattern forming.
Despite a brief rebound this fall, gold's breakdown from this wedge pattern is still intact.
Silver is still forming a wedge pattern similar to gold, but it hasn't broken down yet.
As I've discussed before, the U.S. Dollar Index has been forming a wedge pattern over the past year.
The euro, which trades inversely with the U.S. Dollar Index, may also be forming a wedge pattern.
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Specifically, we consider self-assembling of a group of mobile robots into grid, line, and wedge patterns.
Wedge patterns are typically continuation patterns that lead to notable moves in the direction of the primary trend.
Wedge patterns are consolidation patterns that often foreshadow large moves ahead when the pattern is finally broken, in one direction or the other.
Wedge patterns are typically continuation patterns, which means that gold's bear market likely has further to run as long as the breakdown remains valid.
Wedge patterns often lead to measured moves, or moves of the same magnitude as the trend that led into the pattern.
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