Gold Makes 5.5 Year Highs
The original post was an inverted weekly chart of Gold priced in INR. The correct chart is below, and although we're a day away from a weekly closing candle, it looks like a structural breakout is in progress.
Prices have been basing for more than 6 years and are finally breaking out, suggesting a new long-term uptrend is starting in Gold. As long as we're above these former highs, we need to be long.
Click on chart to enlarge view.
The reason why this breakout looks like the real deal and not a potential failed move is because Silver is participating as well.
A weekly chart of Silver shows it breaking out of a multi-year base and above the downtrend line from its 2011 highs, signaling the start of a new uptrend. As long as prices are above 39,750, the reward/risk is definitely skewed in favor of the bulls.
And it's not just Precious Metals seeing improved price action, but Base Metals as well. Copper, while not making new highs, remains rangebound after sellers failed to push it to new lows. Momentum remains in a bullish range as well, which is another positive sign.
Even Nickel, which made new lows a few weeks ago, has quickly gotten back above support. What's also notable here is that momentum did not get oversold during this selloff, another signal of waning selling pressure.
We don't know whether or not these moves will prove to be failed breakouts like we've seen in the past or if they're for real. What we do know though is that the entire group is participating at once...signaling a renewed risk appetite within Metals, and potentially Commodities as a group.
We've been patient for a long time and our now getting our pitch. Our risk is well-defined and the reward/risk is ridiculously skewed in our favor, so we're willing to accept the risk that this could be a failed move.
Thanks for reading and let us know if you have any questions!
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Allstarcharts Team