Gold continues trading under the three year+ bear trend line of a bullish descending wedge but has closed the month above key $1,100 support and has also printed a bullish-reversal monthly candle pattern. Silver has printed a different, but still bullish-reversal style, monthly candle and is consolidating in a similar style wedge. Most other metals have held above significant support to close out January. However, the fate of the US$ as it navigates major 100 resistance is likely to impact the fate of most metals and determine their next directional move.
Oil is another commodity that has made a bullish monthly close but was written up yesterday and this article can be found through the following link.
GOLD: Gold has enjoyed some recent ‘Flight to Safety‘ activity whilst stocks have been taking a beating and the choppy price action on the US$ has also helped the metal to advance as well. Friday’s US$ rally following the BoJ activity has kept the metal in check for the time being though but any continued US$ bullish momentum will put pressure back on the metal. Keep an eye on the US$ as it tries to navigate the 100 psychological hurdle as success will hinder Gold’s progress but failure would help to support the metal.
Gold monthly: the bullish descending wedge is evident here AND the monthly candle has also closed with a bullish-reversal ‘Morning Star’ look to it.
The monthly Gold chart doesn’t have the ‘gaps’ of a text-book style Morning Star pattern but the overall sentiment is there:
Gold weekly: keep an eye on the bear trend line for any bullish breakout. A break and hold above this resistance would be significant as the trend line has been in effect for over three years. Conversely, watch for any move back below $1,100 to suggest this bullish momentum has waned. The weekly candle closed as a bullish candle:
Gold daily: price action stalled up at the daily 200 EMA but this was also just below the three-year wedge trend line and the 61.8% fib of the recent swing low move. Thus, there were lots of reasons for price action to slow down here:
Gold 4hr: I’m watching for any new TC signal with momentum:
Gold Ichimoku: Gold is trading above the 4hr Cloud but at the top edge of the daily Cloud which is slightly bullish for the time being. A failure to fully emerge from the daily Cloud would be bearish though.
Gold: GC: NYMX Spot charts:
GC monthly: the Morning Star pattern is evident on this chart too:
GC weekly: a bullish weekly candle here too and a similar, bullish descending wedge is evident:
SILVER: This has closed the month with a bullish, almost ‘engulfing’ candle that also has a bullish-reversal ‘Inverted Hammer’ appearance but, like Gold, Silver is still biding its time within a bullish descending wedge.
Silver Monthly: the monthly candle closed as bullish and, essentially, engulfing candle with a bullish-reversal ‘Inverted Hammer’ look to it as well:
Silver weekly: price action continues within a bullish-reversal descending wedge and the weekly candle also closed as bullish. Keep an eye on the upper wedge trend line and $15 level:
Silver daily: the $15 remains as resistance above current price:
Silver 4hr: not a lot of momentum here at the moment:
Silver Ichimoku: Silver is trading above the 4hr Cloud but in the bottom edge of fairly thick daily Cloud so has some work to do to gather a more bullish bias. Interestingly, the top of the daily Cloud aligns with the $15 level. Confluence!
SI: Silver NYMX Spot charts:
SI monthly: a bullish-reversal ‘Inverted Hammer’ monthly candle was printed here:
SI weekly: ditto here too!
ALUMINIUM
AL monthly: this has printed another bullish monthly candle making that two in a row for the first time in over 16 months. Price has held above a triangle support trend line and the 1,500 and 1,250 S/R levels:
COPPER
Copper Monthly: Copper has closed the month with a bearish monthly candle BUT it at least managed to close above the significant ‘2’ handle and above monthly trend line support:
NICKEL
Nickel monthly: Nickel has closed with a bullish coloured Doji candle suggesting ‘indecision’ BUT above 8,000 and trend line support:
PALLADIUM
Palladium monthly: this metal has closed with a bearish monthly candle and below triangle trend line support BUT the monthly 200 EMA seems to have managed to hold price up here a bit.
PLATINUM
Platinum monthly: this metal has closed the month with a bearish monthly candle but still above triangle trend line and 800 S/R support.
ZINC
Zinc monthly: Zinc has closed with another bullish-reversal ‘Hammer’ candle and above 1,600 support:
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