Gold Holds Steady, Silver Takes Reins in a Relatively Quiet Week
NEW YORK (TheStreet) -- A relatively quiet week for markets and many leading stocks, as we are still a bit mixed overall while some great bases continue to complete.
There are several very nice-looking cup-and-handle patterns out there that are nearly complete and ready to move higher.
Cup and handles are about the most powerful pattern there is, which means we are on track for a super July breakout in select leading stocks.
We should be able to hold these stocks for months and see some massive returns, which is always fun.
As for gold, it had a quiet week; this is very positive.
After breaking higher by over $40 in a single day, gold had to digest those gains, and it has done so very well.
Let's look at the charts and see where we should move from here.
Gold was flat for the week, rising only 0.09%, but this is really great to see.
After such a large, fast move, I was worried it would just be a one-day wonder and fail. But, so far, gold is holding very well and now wants to go higher.
Gold has consolidated its huge gains and has a great-looking bull flag now, which tells me we are going to continue this move higher.
We may well now be out of the woods and not going back to test $1,180 and then possibly even $1,000, as I'd thought not long ago.
If the action changes, I have to change with it, or lose.
I am now convinced the low is in for gold.
For now, a breakout above this bull flag at $1,326.60 is the buy level using tight stops, since gold in notorious for false breakouts out of nice-looking patterns.
Silver gained 0.19% for the week and is trying to trend higher now.
Silver seems to be in the early stages of a rising channel. I'm not a fan of rising channels, since they always break down.
That said, this one isn't all that steep, which means it can last awhile.
Steep rising channels do not last long, while a lower-angle rising channel can move higher for quite some time before ultimately breaking out into a spike-higher type of move.
Silver is leading gold, even though it is not really accelerating higher, and that is a good thing.
Gold should break out very soon to catch up with silver.
Platinum gained 1.57% for the week and had a nice move Friday that is taking it back to the key level at $1,490.
That price has been a tough nut to crack for some time, but if gold can get moving, then $1,490 will soon be bested.
Above there is $1,550 as the next resistance level.
As always, however, if gold fails and reverses lower, platinum will follow.
Palladium rose 2.33% on the week and now looks to have canceled out its bearish rising channel.
We've got a small W or double-bottom pattern in place now. As long as gold holds up, we are headed back to highs at $860. Then we'll have blue skies with no overhead resistance at all.
If you're up in Canada, have a great Canada Day; if you're in the U.S., enjoy your Fourth of July and shortened trading week.
Thank you very much for reading, and you can find out more about what I do for members as we focus on leading stocks for the most part at http://wizzentrading.com
At the time of publication, Bevan had no positions in the commodities mentioned.This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.
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