Gold preparing to break higher

Gold

• Gold remains trapped in a range  as we edge slowly towards the apex of a triangle pattern which has been forming since April

• I have to sit and wait for a breakout now which is likely to be to the upside but I will wait for confirmation.

• The timing of the breakout is impossible to know and even the reaction is impossible to guess.

• We tested support at 3320/15 but over ran a little to 3310 before the bounce to 3343.

• Key support at at 3310/3300 today & longs need stops below 3290.

• Targets: 3330, 3340 for profit taking before the weekend.

• However a break below 3290 is a sell signal (with weekly close below 3290 for confirmation) targeting 3284/80 & even 3255/50 is possible in to next week.

• A break above 3350 today can target resistance at 3370/75.

• Shorts need stops above 3380 & a break higher is a short term buy signal targeting 3395/99, perhaps as far as resistance at 3405/3410.

Silver

1. Silver gave us a second buying opportunity at support at 3770/3750 on Thursday with a low of the day exactly here once again.

2. It's now a low for the week so it's been a good opportunity and longs worked perfectly on the bounce to 3815 as we close in on my target at 3825/30 for some profit taking.

3. In the bull trend however we could continue higher & a break above 3840 suggest further gains towards 3860/65 & 3880/3885.

4. Good support again at 3770/3750 & on a retest, longs need stops below the previous swing high at 3730.

5.  On a break below 3720 hopes for the bull market fade and we risk a move to 3680, even as far as 3650/30.