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Crude oil has formed a multi-year pennant pattern and Energy ETF (XLE) is up against resistance. Traders now have positions established that more often than not have seen Crude and XLE fall in price.
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The Power of the Pattern suggested that Gold could be forming an “Eiffel Tower Pattern” within one week of its all-time highs (see Gold Eiffel Tower pattern here)
Many people are citing that Gold & Silver are at bargain prices due to sentiment being so low in the metals complex. No doubt they are right about sentiment! What has to be considered is this….if the 10-year support line breaks in Gold, selling pressure will most likely increase!!!
The bottom chart reflects key support lines for Gold & Silver that I would want to do some aggressive buying. If sentiment in the metals complex is Ugly with a capital “U” right now….just guess what sentiment would look like at those levels!
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The 200 WEEK moving average for silver is $27.10 – that looks like it’s going to be taken out – at least breached. SLW’s is $27.58 – 200 week – and that looks broken at the open. That descending wedge of SLW might be broken to the downside.