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Gold's Surprising Short-Term Bullish Pattern: A Buy Signal?

Published 07/12/2023, 05:02 AM
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Gold: We do have a 2-month bear trend after the potential triple top pattern on the weekly chart, but in the short term, we are breaking higher from the declining wedge pattern on the daily chart - which is most often a short-term bullish pattern, so this is not a surprise.

Gold Chart

On the 1 hour chart, we could have formed a bullish inverse head & shoulders pattern & as long as we hold above support at 1930/28, I believe we have a buy signal. Longs need stops below 1926.

Targets: 1960/65 & perhaps as far as 1975/80.

Failure to hold above 1927 means we remain stuck in a sideways channel & if so, I will be lost for an idea for a few days. A break above 1940 is the next buy signal for today.

Silver appears to be trading in a bear flag pattern, but this means we have a sell signal on a break below 2250 this week - which is in contrast to the bullish idea I have in Gold above.

However, a break above last week's high at 2330 did not trigger further gains yesterday as we hold the 100-day moving average at 2345. Above here today, however can target 2360/65.

Crude Oil WTI Futures August pushing higher as expected, as we beat the 100-day moving average at 7380. Assuming I am now right about the pattern, we have a potential target of 7700/7750.

If you managed to jump on just above 7250 you got lucky - today I would try a long today at 7340/00 - stop below 7250.

Or buy a break above 7500.

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