Gold And Silver Are Both Nearing A Bullish Technical Breakout
From Sean Brodrick: Do you see the potential breakout forming in gold and silver? Man, we are looking at a blast-off if the metals push through overhead resistance.
Spoiler: I strongly believe gold and silver ARE going to blast off, for all sorts of fundamental reasons.
Let me show you two charts. These things are so bullish, they’re like treasure maps.
Here’s a chart of gold, which just hit its highest level since President Trump was elected.
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You can see gold is zig-zagging higher to hammer against overhead resistance. It sure looks like a “cup and handle” pattern. I don’t want to get too technical, but a successful breakout here would target $1,334.
However, that’s a minimum target. I think that the real first target would be $1,370. That’s been overhead resistance multiple times.
And as I’ve told you previously, my target for next year is $1,540.
Sure, that would be a weigh station on the way to higher prices. But gold zigs and zags. We have to expect pullbacks and pauses. It’s a good time to survey the landscape and reload for the next leg higher.
And that’s just gold. Silver looks even more bullish! Yeah, the chart in silver should have bulls frothing at the mouth. Check it out.
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An inverse head-and-shoulders pattern has formed in silver over the past seven months. Again, I don’t want to get too technical. But a breakout here gives us a target of $21.30.
That’s a move of 16% in silver. A good rule of thumb is that leveraged silver stocks can triple the percentage move in the underlying metal.
In technical terms: Hawt diggity dawg!
Now, that doesn’t mean the cup-and-handle pattern must work out in gold. Or that the other pattern must work out in silver. As the old saying goes: “Every sunken ship has a chart.”
On the other hand, charts can also reveal the path toward extraordinary wealth. And these charts show the way to Treasure Island.
The SPDR Gold Trust ETF (NYSE:GLD) was trading at $118.73 per share on Wednesday morning, down $0.89 (-0.74%). Year-to-date, GLD has gained 8.32%, versus a 6.05% rise in the benchmark S&P 500 index during the same period.
GLD currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #6 of 33 ETFs in the Precious Metals ETFs category.
Meanwhile, the iShares Silver Trust ETF (NYSE:SLV) was trading at $17.27 per share on Wednesday morning, down $0.06 (-0.35%). Year-to-date, SLV has gained 14.30%. SLV currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #7 of 33 ETFs in the Precious Metals ETFs category.
This article is brought to you courtesy of Uncommon Wisdom Daily.
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