Commodity Trading, Which Way Will the Dollar go?
Chris Vermeulen, August 27th, 2009
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Mid-Week Gold, Silver, Nat Gas & Oil Update
So far this week we have seen commodities move sideways with traders and investors waiting for the US Dollar to rally or continue dropping, which will trigger the commodities to move. I have provided some below charts showing where prices currently stand.
GLD Gold Trading Fund - Weekly Chart
As you can see on this weekly chart gold has been consolidating for the past 5 months. This bullish pennant pattern is hinting that prices will breakout to the up side in the coming weeks. If for some reason we see the USD rally then I expect to see the price of gold move down as traders rush to sell their gold bullion. I continue to watch and wait for the next buy signal for gold.
SLV Silver Trading Fund - Weekly Chart
Silver has two patterns forming here. The first is shown with the blue trend line which is a head & shoulders. This is a bearish pattern and points to much lower silver.
The second pattern is pennant using the black trend lines. This is a bullish pattern and points to higher prices. As you can see silver has much more time to consolidate before it reaches the apex. I continue to watch silver on the daily chart for an early buy signal.
