(Kitco News) – The support trendline in the gold futures chart below held nicely and now the market is moving back up toward the red resistance line at $1926. The volume has been pretty light so far but the news that the EU may approve some vaccines by early 2021 seems to have propped up the risk sentiment for now. Looking ahead to the US session the main level to watch out for on the downside is the wave low at $1892 per ounce. If the market does break there then the pattern would also be broken and lower levels could be on the horizon. For now the bulls seem to be holding up well and the aforementioned red resistance zone is the important one. Beyond that, the previous wave high at $1939 per ounce would be the next one to watch.
Just like gold the silver trendline has worked very well. At the moment the main sticking point is the $24.54 resistance level. There has now been four major reactions at the level and if the bulls can manage a break it could be significant. If this is the case then the next level on the way up is $25.71 and if there is to be a break of the resistance the bull trend is firmly back on. On the downside, the major resistance zones are still the pattern structure supports. If the pattern does break $23.13 could be the downside target as it was one of the wave low support areas.
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