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Gold, Silver Buy Signals Now Setting Up

By Peter BrandtCommoditiesOct 04, 2015 12:52AM ET
Gold, Silver Buy Signals Now Setting Up
By Peter Brandt   |  Oct 04, 2015 12:52AM ET
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For the first time since the precious metals topped in 2011, both the Silver and Gold charts are constructing possible bottom configurations.

The monthly Gold chart displays the bear trend that began with the completion of a major descending triangle in April 2013.

Gold Monthly 2003-2015
Gold Monthly 2003-2015

The daily Gold chart displays a possible 10-week symmetrical triangle bottom. Of all the major classical chart patterns, the symmetrical triangle is the least reliable (by far). Yet, a completion of this pattern by a close over 1160 would be an indication that the major trend in Gold has turned up.

Gold Daily
Gold Daily

As shown on the weekly graph, the decline in Silver from the 2011 high has been one for the textbooks. The decline has complied with the principles of classical charting as well as any other market in recent years.

Silver Weekly
Silver Weekly

The daily Silver chart is forming a classical H&S bottom pattern. A decisive close above 1550 would complete this bottom and indicate that the 4-1/2 year bear trend in Silver is over. Of course, a considerable period of time of further base building could occur before Silver enters another bull phase.

Silver Daily
Silver Daily

Disclosure: The information in this post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

Gold, Silver Buy Signals Now Setting Up
Gold, Silver Buy Signals Now Setting Up

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