Last week we saw commodities sell down then put in solid bounce, which allowed us to generate new pivot lows for drawing support trend lines. This is the exact type of price action I have been waiting for. Natural Gas did nothing special but crude oil put in a very strong bounce and is now trading at a double resistance level which is explained later in the report.
The Precious Metals Sector
Gold stocks sold down the first half of the week but then put in a solid bounce Thursday and Friday along with bullion prices. As you can see from this chart it has three reverse head & shoulders patterns and this type of pattern is bullish. You can see the patterns in March, then April, and we are currently at the final stages of the third H&S. If the charts do what they are telling us then we should see prices surge higher over the next 1-2 weeks.
This chart shows my simple signature setup. I focus on several chart patterns, tools and techniques like trend lines, MACD momentum, Elliot Wave, candle patterns and strict money/risk management rules.
Gold Bullion Prices – GLD ETF Trading
We took advantage of last weeks intraday and daily price action. Lets watch the market unfold…
Silver Bullion Prices – Silver ETF Trading
Silver is in the same boat. Looking bullish and ready to rocket higher.
The Commodity Bounce Conclusion:
Last week was exciting with precious metals providing trading opportunities for us. We saw one of our Golden Rocket setups surge 55%. Gold stocks are becoming the flavor for investors as they anticipate gold bullion prices to spike in the coming months. Crude oil and natural gas are not providing any setups at this time. We are currently watching and waiting for some low risk setups.
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