Not much to add this morning but I wanted to pass along these charts. It's not much but it's a start!
On the previous post, I pointed out that both gold and silver were very close to breaking out of "pennant" formations on their daily charts. With today's action, they have! Now, again, take this for what it's worth:
- These are simply formations at the base of the long-term pattern.
- The primary ranges are still intact, namely 27-29 in silver and 1535-1635 in gold.
- However, these initial breakouts are a positive development and may be the initial signal that he next move higher has begun. Watch closely to see if the breakouts can be maintained.
And I thought I would give you this chart of crude, as well. How many times have you read me stating that "what was resistance becomes support and vice versa"? Well, the crude oil chart shows this about as clearly as possible. Recall that for the past few weeks, I was telling you that $88 and then $90 would be critical levels for crude to pass IF it was going to sustain a rally. Well, take a look at the chart below. The next target for crude is to exceed last week's highs. IF it can do so, $100 will be clearly within its sights.
As I type, gold is 1616 and silver is 27.65. Not too shabby, especially considering that it's August gold option expiration day. Let's see if we can hold these gains for the rest of the day and then sit back and see what tomorrow brings.
Have a great day!