PGOLD OCT 13 2014

Let's place the price action of Puregold into the technical review. The most current potential price pattern that can be identified is a potential diamond price pattern. The diamond price pattern can be a sign of reversal or a sign of continuation. It really depends. Looking a greater distance though, the pattern seems a bit hard to identify. Go to weeklies to understand. Since prices have topped near middle of May, price have gone awry. It is interesting to note though, before price went down a price pattern emerged. An ascending triangle emerged that seems to try to imply that the correction is about to end and the resumption of price advance will inevitably follow. The market however second guessed the ascending triangle. After what could be definitely called a failed breakout from that first pattern a second pattern emerged. A tight descending triangle emerged that tried to confirm a shift in the attitude of the market towards Puregold. Dropping from 42++ to 32++ a new potential pattern has emerged. That is if the pattern will provide an actual signal still remains to be seen. Market action however might lean towards continuation of falling, except that a possible strong support can be found near 31.8. So is this new potential diamond pattern a sign of reversal or will it be a sign of continuation of the prevailing price action? Note since middle of May till the close of October 10, 2014 Puregold is in the bearish territory. Prices displayed bearishness for more than 2 months with prices atleast depressed  32.68% from its 48.5 high.

Charts above are dailies and weeklies.