In this Weekend Report I’m going to take an indepth look at some the individual precious metals stocks so we can see where they’re at from a short to long term perspective. We’ll start by looking at some of the more important big cap PM stocks as the precious metals stock indexes can’t have a significant rally until this group is ready to run. Anything can happen in the very short term but the further you go out in time the less likely the big trend is going to change on a dime.

The first stock we’ll look at will be a daily chart of the ABX which is one of the biggest of the big caps. From late last year to July of this year ABX built out a shallow bear flag consolidation pattern. The breakout led to our most recent lows around the 6.50 area. Last Friday it gapped below the bottom black dashed S&R line and backtested it at the end of the day. So on the very short term time frame ABX is testing overhead resistance at 6.50.

The long term weekly chart shows the massive H&S top ABX built out that reversed its bull market reversing the uptrend into a downtrend as shown by all the consolidation patterns. The close on Friday marked the lowest closing price since the bear market started in 2011 which is a milestone in its own right. You can see how the blue bear flag on the daily chart above fits into the bear market downtrend.

The 20 year monthly chart shows the massive inverse H&S bottom ABX built out in the late 1990’s – earlier 2000’s which led to its bull market run. That major low came in around eleven. What this chart so clearly shows is that ABX has now taken out the major low in 2008 and now the other major low at the bear market bottom in the late 1990’s. Note how the recent blue bear flag formed right on that important bottom rail in the 1990’s signalling that if it broke to the downside new lows would quickly follow. As you can see ABX has been in free fall since the break below the bottom rail of the blue bear flag and the horizontal support and resistance line at eleven. This move down could very well mark the capitulation move is underway.

Now that you have the idea, in this great Weekend report there are 11 more charts analysed just Go HERE – Money Talks Ed