Gold and Silver Hovering Above Key Technical Support

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"But bulls shouldn't let their guard down; the metals are still contained within a wedge formation."

Minyanville, Andrew Nyquist

Last week, both gold and silver bounced off major support lines and thus far the bounce has been strong. But bulls shouldn't let their guard down as the metals are still contained within a wedge formation.

Therefore, a stair-step technical approach may be prudent for those that want to get long for a trade or investment. Here's how each of the precious metals stacks up technically.

Gold

Gold prices have been giving metal heads heartburn in 2012. But the recent $65 surge near support has many hopeful.

First and foremost, gold must take out 1625, the scene of the May breakdown, lateral resistance, and the 4 month downtrend line. A strong move higher would open the door to the next stair-step at 1675.

If 1675 is converted, then comes the descending down trend line currently at 1720 and falling incrementally. . .View Full Article

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