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In last night’s Weekend Report, we looked at some charts for the PM complex showing a potential important low forming. I mentioned that we should have our answer early this week, which came today.

Last night, we looked at this 15-minute line chart for the HUI, which was showing a potential small inverse H&S bottom forming at the 4th reversal point in the expanding falling wedge. Today, we got the breakout above the neckline. As always, a backtest is possible.

This longer-term 2-hour bar chart shows how the expanding falling wedge fits into the bigger picture. At reversal point #1, the HUI formed a micro double-top reversal pattern, while the 4th reversal point low formed a micro double-bottom/H&S bottom reversal pattern. I mentioned last night that if the expanding falling wedge was a standalone consolidation pattern, then it could lead to the next important impulse move to the upside.

The other important scenario is that the expanding falling wedge could be part of a larger consolidation pattern, which at this stage is very early in its development.

Also, note how the current trading range is forming just above the bullish falling wedge on the left side of the chart, one consolidation pattern forming on top of the previous one.

This is what our current trading range looks like on the longer-term daily chart. Here again, you can see how the October 2024 bullish falling wedge formed on top of the December 2023 downtrend channel, with our current trading range forming on top of the October 2024 falling wedge.

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