We begin with gold, which barely cracked a huge supporting trendline, only to do a marvelous head fake and blast over $50/ounce higher on Friday. Take note the gap it is approaching is important resistance.
Silver, too, had a great Friday. On the one hand, those two lines looming represent powerful resistance. On the other hand, if SLV can manage to conquer those lines, it will complete a very handsome inverted H&S pattern and I suspect precious metals will become supercharged at that point.
The same can be said for the miners. That horizontal I’ve drawn is important short-term resistance. Conquer that line, and you’re going to see gold, silver, and especially the miners, vault higher.
Obliquely related to this is the overall commodity ETF. If we get precious metals rocking higher, along with crude oil (which has been political football lately, even more than usual) not only will DBC stay within its long-term channel, it will also zip past the horizontal I’ve drawn and conceivably could be at lifetime highs in the weeks ahead.
