Cooper’s Anatomy Class: How I Combine Technical Analysis and The Principle Of Squares To Pinpoint Entries & Exits

Silver miner WPM struck a high of 47.60 in April 2011 that led to a low 5 years later in January 2016 at 10.

On May 20, WPM traded up to 47.15, testing the high from 9 years ago and reversed.

Stocks have a memory.

The reversal led to the first Holy Grail buy signal since its March 18.66 low.

This is because last week, WPM tested its RISING 20 day moving average for the first time since the March low.

The rebound/victory back above the 20 day was short-lived.

WPM reversed back below its 20 dma with authority on the Friday weekly closing basis last week.

On Monday, WPM tried to lift itself back above “the line” but was conspicuously absent the rallies in other silver miners such as AG and PAAS.

That was a canary in the silver mine as WPM decisively knifed below its 20 day line on Tuesday leaving a “Grail Fail.”

In other words, this test of the 20 day looks like a failed pullback at this point.

As well, it appears that WPM has carved out a Head & Shoulders topping pattern from this key 47 region.

Based on Tuesday’s knife below the Neckline of this H&S pattern, a projection to 37.50 region has been given.

This ties to the rising 50 day line.

Not all reversals are created equal.

All trading, all pattern is contextual.

The best trading tool on the planet for putting a potential change in trend in perspective is the Square of 9 Wheel. Period.

WPM topped on May 20.

The Square of 9 below shows May 20 is 180 degrees straight across and opposite 47.

180 degrees down from 47 is 35.

When technical patterns come together with the Principle of Squares, the odds of a trade going in your favor are magnified.

In sum, a pullback toward 35-37 and the rising 50 day moving average should offer a buying opportunity for a new leg up in WPM.