Gold and Silver – Can they breakout?
Thursday saw gold and silver both had solid rallies. Both closed above our resistance levels and could be on their way to a new trend. Our model did not reverse today although it’s very close to going long. One more up close would most likely create a buy signal.
Today is jobs Friday which can create a lot of volatility in the metals. The pattern itself is on the cusp of changing from bearish to bullish but are still in congestion. Today’s action could create the next uptrend or confirm that the metals are still in a downtrend.
We have written about the phases of the markets in the past, right now Gold and Silver are in congestion. They will breakout one way or the other, currently they are closer to breaking out to the upside. My guess is a rally today will have us reversing Sunday night, a sell off will keep us short