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