Before I leave, I wanted to go over a double bottom formation. It’s possible we have one in junior miners. Prices will either fail and decline or prices could breakout. Included are of examples of good breakouts. Note: Above average volume and tall candles should accompany the breakout.
-XAU (JUNIOR MINING INDEX)- To establish a double bottom or sometimes referred to as W-Bottom prices would have to explode through the 74.00 level on excellent volume (if the volume is tracked). If that occurs, I’ll exit my hedge and go long. There is triple resistance going into next week at above resistance box.
Double bottom breakout. Large bullish breakout candle.
Sometimes prices retest the breakout or neckline. Progressive closes back below the neckline indicates a pattern failure.
Below is a failed breakout.