11 March 2014

Gold Daily and Silver Weekly Charts - Coiling, Coiling, Coiling

Gold and silver are in the sideways chop that I suggested that they would find just underneath the big overhead resistance here.

I am not going to waste time giving out the particulars of the various measuring objectives if we break out now. We can wait to see if we do get a breakout and what character it might assume.

I have included a close up of the current formation on the gold chart, which is part of three inverse head and shoulders formations, with the largest being part of a double bottom. If the neckline is broken and then survives a retest it is considered 'working' and the minimum objective is the distance from the head to neck.

In this case the necks could start falling like dominoes, although they are not considered valid necklines until they 'work.'   We are in a tough slog now, but the battle royale will be fought around 1420.

The objective of the biggest, the double bottom, is $300 from $1490.  Interestingly enough, $1790 takes gold back to where it originally failed, at the top of the current chart's big 'cup.'

Silver on the weekly is also in a big double bottom formation that targets $30+ if it works, that is, it breaks the neckline and survives any retest.

There was the usual small volume in and out of the Comex but nothing of great importance. Comex is falling back into the scenery.

Have a pleasant evening.