Gold And Silver Waiting For Major Bullish BreakoutsBad data from the US helped the precious metals to climb higher and on both: Gold and Silver, we are very close to see major long-term buy signals.
Lets start with the Gold, where the price defended the 1307 USD/oz support for the third time in a row. Inverse Head and shoulders pattern is off the table, but the new one has emerged: triple bottom formation. The resistance remains the same and it’s the 1315 USD/oz. The price closing a day above that level will be strong signal to go long.
Silver was in a much worse situation but is currently showing signs of a potential bullish reversal too. Two days ago, we broke a lower line of the symmetric triangle pattern and the major up trendline. Yesterday, we successfully tested those areas as a resistance. The situation looked dramatic but buyers managed to create a reversal, which is drawing a right shoulder of the Inverse Head and Shoulders pattern. The price closing a day above the yellow area, will be a strong buy signal.
Last instrument is the USDCAD, where the price also created an inverse head and shoulders pattern but here it is much bigger. What is more, on this pair, it is present on a major up trendline, which only strengthens this formation. The price closing a day above the red neckline, will be a legitimate signal to open long position.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis