Will Gold break resistance? Silver uptrend and WTI market analysis [Video]
|Last week we talked about this falling wedge on Gold and, as predicted, price action broke out to the upside.
Now, we are in an ascending triangle with a strong level of resistance at around $1,930.
If we see a downturn in the Stochastic Oscillator and a bounce of price action to the downside we may see price falling to the lower trend line.
A break above could see price moving higher to any one of these key levels.
If we move out to the daily chart we see that the bottom of our triangle is the 38.2% Fibonacci level and the 23.6% level represents key levels from the last few months.
Silver is clearly in an uptrend with higher lows and higher highs but watch out for this key level of resistance which was the neckline of this head and shoulders pattern.
If we move out to the daily chart we can see just how important this level is from this supply zone late last year.
We also need to keep an eye on this downtrend which is contrary to the 4-hour chart.
Price action on WTI broke out of the descending triangle that we spotted last week.
We now see a ranging market with strong resistance that was a key level last year and into the beginning of this year.
Yesterday we spotted this double top on the DJIA but price action could not break the neckline and the stochastic oscillator is now looking bullish so we will need to see if the pattern continues.
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