   |
|||
Gold & Silver Technical UpdateChris Vermeulen This week commodities have been moving higher which is exciting. Gold, silver, oil and natural gas all have bullish looking daily and intraday price action. Monday we saw commodities spike higher and profit taking Tuesday and Wednesday. I am expecting a sharp move here and it could be in either direction, so this report is to keep you on your toes. HUI - Monthly Chart Below is the monthly chart of the HUI index (gold stocks). With the recent move in precious metals we are seeing gold stocks surge higher. The monthly chart generates long term buy signals. We are looking for a breakout above the red resistance trend line and if we get a breakout then I expect prices to surge higher for gold stocks, gold and silver bullion.  Gold Miners Index - GDX ETF - Daily Chart Here is a chart of the gold miners exchange traded fund. This chart generated a low risk buy signal for us last week and looks to be setting up for another move higher. The reason I think we will see prices move higher tomorrow is because the intraday price action was bullish for both gold stocks and gold bullion. The red candle shows a long lower wick. This shows prices sold down and buyers stepped in buying up gold stocks. If we get a rally this week and make a new multi week high then we are able to draw a new support trend line. We will use this level as our stop (exit point) if price breaks below.  Gold Bullion Fund - GLD ETF - Daily Chart Gold has similar price action and we hope to see higher prices.  Silver Bullion - SLV ETF - Daily Chart While gold and gold stocks have been moving sideways for two days silver continues to rally. Silver can act as a leading indicator for gold so it is exciting to see prices rise.  TheGoldAndOilGuy Trading Conclusion The monthly HUI chart is getting close to a long term buy signal. With any luck our recent buy signal in GDX will have us in early for the big breakout and multi month rally. I do not forecast but technically speaking the charts are looking bullish for precious metals. It is time for commodities to shine as they pause to take a breather. We could get a sharp drop or a nice pop higher in the next couple days only time will tell so be ready to lock in some gains if things start to slide. ### If you would like to receive
my Trading Signals and Golden Rocket Trades please visit my website
at: Chris Vermeulen Chris Vermeulen is founder of the popular trading site TheGoldAndOilGuy.com. There he shares his highly successful, low-risk trading method. For 6 years Chris has been a leader in teaching others to skillfully trade in gold, oil, and silver in both bull and bear markets. Subscribers to his service depend on Chris' uniquely consistent investment opportunities that carry exceptionally low risk and high return. Subscription
Service: You can sign up here. This article is intended solely for information purposes. The opinions are those of the author only. Please conduct further research and consult your financial advisor before making any investment/trading decision. No responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis. 321gold Ltd |
website:
