Today, stocks extend their gains and the US dollar tries to recover from yesterday’s heavy losses.
Silver is first up today as we are close to a very important resistance created by the upper line of the upwards channel formation, horizontal level on 16,8 USD/oz and the mid-term downwards trend line. The first attempt at breaking it was unsuccessful, which has created a chance for a bearish reversal. As long as we stay above the black long-term upwards trend line, buyers should be relatively safe.
When trading silver, sometimes it’s a good idea to look for hints on gold. Sentiment is very positive here since the price has broken the 1258 USD/oz resistance. As long as we stay above this level and the mid-term upwards trend line, the buy signal will stay alive.
Last up is the GBJPY, where we have an upwards trend and, at the same time, a bullish correction pattern – flag. What is more, this flag can be broken down into an inverse head and shoulders pattern. It doesn’t really matter as both of them promote a bullish scenario. For a clear buy signal, we need to wait for a breakout of the upper black line.