“Bad News Has Wings” – Like Elephant Dung

• Posted by Greg Harmon
• on May 4th, 2011

The Andrew’s Pitchfork has worked well in the metals complex, giving suggested support and resistance areas and helping to see extended price action (see related below). But what has been going on in Silver the last few days brings this old Japanese proverb to mind. You have heard this same expression in several forms, ‘Take the stairs up and the elevator down”, “Commodities eat like a bird and dump like an elephant” (ht to @SokoGator) to name a couple.

This Japanese phrase aptly describes the Three Black Crows pattern seen in the SLV chart below. The opposite of the Three Advancing White Soldiers pattern, it is three good sized red candles that press lower and lower, each usually closing near the low. What makes it interesting in an environment where SLV has already fallen over 20% is that it is a continuation pattern. Not a guarantee that the bottom is still to be found but a suggestion that maybe this shiny rock is truly like an elephant.

SLV

Which Metal is Best for Making a Pitchfork

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