Chart had morphed into an ascending-triangle pattern (the blue lines). It was coiled tight and poised to explode higher.
Platinum broke out last week.
Silver exploded higher yesterday.
Now it's gold's turn to bust out to the upside.
We took a look at the shiny yellow metal just three weeks ago. But based on the action in the other precious metals, we ought to keep a close eye on gold. It's on the verge of an explosive move that could happen any day.
Just look at what happened to silver yesterday...
The chart had morphed into an ascending-triangle pattern (the blue lines). It was coiled tight and poised to explode higher.
Yesterday's action lit the fuse and ignited a rally that should push silver up through the first resistance line (red line) at about $29.50. Ultimately, this breakout should have enough power to test silver's April high near $33.
As you can tell from the following chart, gold has the exact same pattern...
Gold has been coiling for a while now – storing up energy for its next big move. All that's happened so far, though, is a big rally in the frustration level of gold bugs as we wait... week after week... for a bullish resolution to this pattern.
Now, gold is approaching the apex of its triangle. So a decision-point is near. Silver busted higher out of the exact same pattern yesterday. And the odds are tilting increasingly in favor of the same thing happening for gold.
We could be looking at a bullish breakout for the yellow metal. When that happens, gold should make a quick move higher toward the first resistance level at about $1,665 per ounce. Ultimately, a move to $1,770 should be in the cards.
Stockhouse.com: Taking
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