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Originally Posted on 3/04/2018 @ 4:42 pm
by Steven Warrenfeltz
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Before we get to this Review & Outlook, below are some of the Best Bullion Market-Related News articles that were taken from this guide's home page, over the past few weeks.
photo provided courtesy of pixabay.com
This guide's last blog post, seen here, was about how the U.S. Dollar fell below the $91.00 price level which was a three-year-old, critical support level,
However, even though this was bad news for the dollar, all of the chart patterns for the dollar in that blog post were positive.
But now that those positive patterns have been validated and confirmed, the dollar's future isn't looking bright, which should be good news for gold and silver.
In the charts below, you will see why the title of this blog is Negative Signs will Hold the Dollar Down.
All the charts on this blog are Daily Charts unless noted otherwise.
Two weeks ago, I wrote the following outlook for the U.S. Dollar and posted the chart below.
In the outlook chart below, the 'Falling Expanding Wedge' is still intact, but, I have faded its labeling and dotted its trend-lines because the positive pattern may not play-out as expected, but that scenario is doubtful.
The dollar should confirm or deny the pattern sometime in the future, the question is; When?
But now, a new 'Falling Expanding Wedge' has formed in the dollar's chart.
The new positive wedge pattern is steep and narrow, so barring any unexpected news, the dollar should confirm it sometime in the near future.
However, the dollar's MACD and RSI are giving very little indication as to which way the dollar will move, so perhaps the dollar will break the new pattern soon, or it may continue its fall inside this new pattern like it did the older one, time will tell.
Last Sunday I wrote the following at the top of this guide's main blog page:
All of the chart patterns in this guide's last blog post titled: 'The Dollar Breaks a Critical Support Level' have been been broken and confirmed.
However, no new patterns have formed in the U.S. Dollar, Gold or Silver charts which is why there is no post this weekend.
In the chart below, you can see that both of the Falling Expanding Wedges were validated and confirmed several days ago.
Now, new patterns have formed in the U.S. Dollar's charts and I will show you what they are in the outlook section below.
In the outlook chart below, I have identified two of the most prominent negative signs a.k.a wedge patterns in the U.S. Dollar's chart.
In all honesty, I found two other negative patterns in the U.S. Dollar's chart, but one was simply like adding gas to a fire in regards to the rising wedges and the other is only implied, we'll have to see how the dollar's price moves in the days and weeks to come, before I can identify that pattern in the charts.
Plus, had I added that other wedge it would have made the chart below cluttered and hard to read, if it isn't already.
Anyways, getting back to the outlook for the U.S. Dollar, two negative 'Wedges' have been identified in the chart.
Currently, the price of the dollar is literally sitting on the bottom trend-line of both wedges, which means they could be confirmed in the next day or two.
However, the 'Rising Wedge' in 'black letters' is the dominate wedge, so the price of the U.S. Dollar could bounce back up and trade inside it for a few days before the weight of the $91.00 resistance level helps to push the dollar below the trend-lines of the wedges, confirming them.
U.S. Dollar's Resistance Levels
U.S. Dollar's Support Levels
Two weeks ago, the following commentary and the chart below it, was posted for silver's outlook.
For the week to come, silver has formed a Rising Expanding Wedge.
As the chart suggests, silver's price could confirm the negative wedge pattern very soon, or we could see the price of silver bounce around inside the pattern before it confirms it.
Either way, as the negative pattern suggests, a dip in silver's price should happen sometime in its short-term trade.
In the review chart below, you can see that the price of silver did confirm the 'Rising Wedge Pattern' a few days after the last blog post was published.
In silver's outlook chart below, a positive 'Falling Expanding Wedge' has formed.
Silver's candlestick chart and its RSI (lower indicator) are showing that silver's price is possibly going to continue to move up.
However, its MACD is giving no indication as to which way it will move and the price of silver has been very volatile, so we could see the price move in either direction in the days and weeks to come before it confirms the pattern.
One thing to know is that the Federal Reserve won't be making a decision on interest rates until March 21st, so until then, we can pretty much expect to see silver move up or down with a lot of volatility.
Silver's Resistance Levels
Silver's Support Levels
Below, is what was written in the gold outlook from two weeks ago and its corresponding gold chart is below it.
Like silver, gold has also formed a 'Rising Expanding Wedge,' it's a little broader than silver's wedge, so it isn't expected to confirm it as soon as silver is expected to confirm its negative wedge.
In addition, much like the dollar's MACD and RSI, gold's lower indicators are offering very little indication as to which way the price of gold will move in the near future.
So, for the next week or two, we should see gold's price move inside the negative wedge, before it confirms it.
If you compare the chart above with the chart below you can see that although the pattern was confirmed, I was wrong about how gold would trade inside the wedge.
The price of gold broke the 'Rising Expanding Wedge' two days after the gold outlook chart was posted, much earlier than I stated.
In gold's outlook chart below, you can see that like silver, gold has formed a 'Falling Expanding Wedge.'
The wedge is a positive pattern, and like silver's pattern, gold's price is currently trading near the upper trend-line of the wedge.
In addition, gold's MACD and RSI are giving a slight indication that more of a rebound could be in its near future.
In regards to the news, its hard to say which way gold will move, however the biggest thing to remember about gold is; "Uncertainty is its Best Friend."
Time will tell how soon gold will confirm its positive 'Rising Expanding Wedge.'
Gold's Resistance Levels
Gold's Support Levels
Thank You for Your Time.
Have a Great Week and God Bless,
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