Commodities have been in a strong uptrend but every now and then short term counter-trend oportunities come along and they are worth taking. For now, it is wait and see.
Gold
It looks as though a short set up is developing coming days and I am waiting for things fall into place. We have weekly & daily RSI and MACD divergences. There is also weekly bearish shooting star but downside follow through this week is needed for shooting star to be valid.
A daily close up shows gold within what appears to be a rising triangle. Only a close below rising trendline approximately at 1410 will serve as an invitation to short targeting its major uptrendline from Nov 2008 currently around 1380. Till then, we will keep an eye on that daily uptrend.
Silver
An amazing trend so far but a potential short trade is brewing here as well. It is within a rising wedge. At this point it is mostly about playing the wedge boundaries but the real deal will be a potential fall from the wedge in April.
Oil (WTI)
It looks like a cup & handle and the target is 105.5+8=113.5 (105.5-97.5=8). But what I do not like is the RSI & MACD divergence and a possibility of pattern failure. Then oil should fall through the steep uptrendline and head to the top of the failed wedge channel as shown with red arrow. So, wait and see approach looks very reasonable to me.
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