Chris Vermeulen
www.GoldAndOilGuy.com
May 10, 2009
Gold, Silver and Oil breaks out to new multi week highs and shows signs of more strength to come. The charts below show both weekly and daily trading analysis pointing to higher prices for these commodities.
Weekly Gold ETF Trading
Gold closed on Friday at a 5 week high, breaking above its resistance trend line on the weekly chart. Weekly chart pattern breakouts carry much more momentum behind a move, than daily charts. This chart of gold (GLD fund) clearly shows a weekly breakout in the price of gold.
Also, I have drawn what appears to be a very large reverse Head & Shoulders pattern. It is this pattern, which is pointing to a much higher price for gold. The measured move for this pattern is the distance from the Bottom (head) to the top (neckline), which is about $300 per ounce. If we see this chart break above the neckline over the next few months, then most technical traders will be buying gold up to $1300 per ounce, which would be the next major price target. (more)
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