Gold, Precious Metals , Crypto’s and Dow’s Price Action
Gold nearing all time high , precious metal and crypto’s breakout. Spot Gold is approaching its all time high at 1920 (last done 1900) , silver broke above the US$19.54-21.09 resistance with Platinum and palladium joining the party . Crypto currencies in Ethereum and Bitcoin are breaking out too. On the equity front, The Dow last traded at 26469 could be weak in the short term , heading for its support at 26277 and 25748. Nasdaq last traded at 10483 could be poised to test its 10120 support . Silver’s break above the US$19.54-21.09 resistance zone on Wednesday triggers the bullish implication of its 2015-2020 basing pattern. This breakout is equivalent to gold’s January 2019 breakout and supports an ultimate upside target for silver of US$31.80-32.00. In the short term, silver is in “overbought” territory so there are risks of a short-term pullback/correction. However, with both the daily and weekly momentum indicators confirming the breakout, short-term pullbacks should be seen as buying opportunities in anticipation of a move up to the US$31.65-32.10 area. The old resistance zone at US$19.54-21.09 is now seen as support. Looking at the silver/gold ratio this week’s surge in silver has the ratio breaking out of the 2012-2020 downtrend channel suggesting further outperformance in silver over gold For Crypto, Ethereum’s breakout last Wednesday from the June-July trading range targets US$217-248.00. This breakout in turn has confirmed a larger move from the 2019- 2020 consolidation pattern which supports a minimum upside target of US$365- US$400. While Bitcoin is lagging Ethereum the chart setup is similar. The breakout from the May-July consolidation pattern implies an initial upside target of US$12,200-12,500.
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