Saturday, February 26, 2011

Gold and Silver: Right Up to the Line

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Traders on Friday left gold and silver firmly nudged up against down sloping price trend lines, suggesting a breakout of significant magnitude could be in the offing early next week.
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Click on any chart to ENLARGE
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This first chart is the continuous contract of daily gold (/GC).  The December and early January highs have created the trend line that gold has now spent most of the previous 4 days consolidating just beneath. 
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A little closer look at this consolidation is offered by this second chart of the continuous contract of hourly gold (/GC).  Even the True Strength Index (TSI) indicator was left in suspense for the weekend - as it appeared ready and anxious to bust higher through its down sloping trend line.
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Traders also left for the weekend with silver coiled for a major break.  This hourly chart of the continuous contract of hourly silver (/SI) makes clear that the silver bulls are ready to takeover at a moment's notice.
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Copper, palladium and platinum took a beating early in the week but bounced back sharply by Friday, seemingly in agreement with the price action of gold and silver.  Next week could offer the resumption of strong price appreciation for the precious metals and their miners.  Let us hope!
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My TSI Trading record has been updated.
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Tomorrow's Trades (Today!) has been updated for Monday Feb. 28.

2 comments:

  1. you think gold and silver will broke this line, and go up?

    ReplyDelete