Precious metals investors may have reason to get excited once more. Months of drifting sideways to lower may soon be over… provided Gold and Silver break out above key resistance (downtrend lines).
Actually, Gold futures have already broken out above its 14-month downtrend line and this is the first step for a bullish call.
BUT, as I have noted to client’s, I would like to see a weekly close above this downtrend line (confirming the breakout), as I don’t want to get caught in a false move.
More aggressive traders are likely long a small position… they should be aware of this week’s closing price and use a stop.
At the same time, Silver futures are forming a bullish inverse head and shoulders pattern and testing neckline resistance around $25 to $25.50. Again, keep an eye on the weekly closing price.
We should have a clearer picture by Friday EOD.
Gold Futures Trading Chart
Silver Futures Trading Chart
The author or his firm have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.