What’s Up, What’s Down: Gold Breaks Out of Its Bull Triangle

Comments for Friday, September 4, 2009

Looking Ahead to Today by Reflecting Back at Thursday’s Price Action


Higher settlement Thursday for copper, sharply higher for gold, silver and platinum. All of the metals continue to be in uptrends with gold and silver now leading the way. Copper settled higher still moving higher overall but has been consolidating since the beginning of August. The key price to hold is 27500 basis the December contract. Gold had its highest close since February after breaking out of a large BULL TRIANGLE on Wednesday while silver had its highest high and close since August ’08. Platinum settled sharply higher also still in a short term downtrend but long term in an uptrend.

Copper Chart

platinum Chart


Higher closes yesterday for the British pound, Aussie dollar, Canadian dollar and dollar index while lower for the Euro Fx, Swiss franc, and Japanese yen. The euro has been choppy while consolidating in sideways action over the last month while long term in an uptrend. The franc continues to be in a gradual uptrend overall. The yen had its highest high and close since July 13th again but sold off to settle lower this time in reversal type action still looking to test its last high around 10900 but should do some retracing first.

The Canadian dollar settled slightly higher trending lower over the last month needing to hold the 9000 area. Overall this currency is still in an uptrend. The pound settled lower making a new recent low needing to stay above 16000 which is near its last important low. Still the pound has been basically trading sideways since the beginning of June.

The Aussie dollar also closed higher and has been consolidating since early August still in a strong uptrend overall. The dollar settled lower still in a downtrend overall but holding its lows since early August. I hold Buy Signals on the euro, Swiss franc, yen and Canadian dollar. Still bearish on the U.S. dollar index.

Canadian dollar Chart

Free download of my report, Trading the New Mini-Gold and Silver Futures, available at: https://www.zaner.com/3.0/ralex1.asp.

See the balance of my morning comments, including the Metals, Softs, Energies and Grains, at my website. For my complete coverage, visit my commentary page at www.markethead.com.

The information in this Report and the opinions expressed are subject to change without notice. Neither the information nor any opinion expressed constitutes a solicitation by Rick Alexander or the Zaner Group of the purchase or sale of any futures or options. Futures and options trading is speculative in nature and involves risks. Spread trading is not necessarily less risky than outright positions. Futures and options trading is not suitable for all investors.

Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. If you would like a free booklet explaining the charts mentioned above, email Rick at ralexander@zaner.com.