Charts of the day:Platinum and Silver have breakouts, Gold fails to follow (yet)

 

Silver and Platinum diverge from Gold. Time will tell is these buy signals are any good.

Yesterday the daily Silver chart completed a 7-week 5-point symmetrical bottom. The target is not huge — only 29.20 (we are almost there).

 

The Platinum chart (due largely to disruptions and a major mine) completed a similar triangle last Thursday and a possible falling wedge on Friday, although the wede interpretation is not decisive. The target in Platinim (if the wedge is correct) is 1560.

Gold is actually the metal in which I have the greatest trading interest. The Gold daily chart is lagging and has not yet confirmed the breakout in the other precious metals. The daily chart exhibits a possible 3-month triangle. An attempt to decisively clear the upper boundary of the triangle in late July and mid August and now again during the past three days have stalled (so far).

A close above 1631.7 would confirm the triangle bottom and complete the small ascending triangle that has taken shape since July 31. A bull signal would establish a minimum target of 1685 to 1710.

Final note: My own personal opinion is that all of these bullish signals will faily. Yet, market action must be respected and until there are signs of failures the correct momentum play is to buy dips.

Markets: $GLD, $SLV, $GC_F, $SI_F, $PL_F

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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