Whenever major breakout levels are being “pushed” in the market it is important to know the ramifications “if” those levels are broken.
This week (and quite possibly today) we are probing some major levels in Gold, Silver and Copper. Most of you know the strong inverse relationship to gold/silver and the US dollar. As for copper, it has a direct correlation to global growth, so if it is going down the US dollar is probably going to get bid up on “risk aversion.”
Here are the charts, and you can draw your own conclusions:
Daily Gold triangle with key support at 1558 and weekly support at 1525
Gold Weekly bearish wedge
Silver Weekly bearish wedge
Copper Weekly support, longer term H&S pattern. 3.27 key support
GLD/UUP correlation. Like I said, you can draw your own conclusions.
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Disclaimer: I am short Silver and I am pretty sure I will be long the USD a few times today