Commodites update

Crude oil saw one of the worst monthly fall in the May. On May 9^th I wrote that crude was one of the weakest commodity chart we have seen. Crude recently broke below the channel and is now heading towards 70 USD per barrel.

Crude NYMEX daily

 

The next chart I have presented is gold intraday chart. Form this chart we can see that 1520 is a strong support for gold and once gold breaks below 1520 it will correct severely.

Gold Intrady 240 Mints chart

The next chart daily chart of gold. We can see that gold breaking below a symmetric triangle and down side target if gold breaks below the neck line would be around 1300 USD.

Gold Daily chart

The next is a daily chart of silver. We can see that silver have broken below the long term up trend and is now trading in downward sliding channel. The lower end of this channel is at around 20 USD.

Silver - Daily chart

 

Similarly we can see from the next chart that silver have support at 26 USD. Once 26 is broken silver will fall up to 20 USD

Silver - 240 mints chart

Next we have a yearly chart of silver. Last year’s candle stick pattern in silver was of a shooting star/ Gravestone doji. This is a very bearish pattern and generally signals a trend reversal. If we look at long term support for silver the trend line is at around 20 USD.

Silver - Yearly chart

 

Next chart shows what year 2012 could look like. As readers can see if silver breaks below 26 which is kind of open low for silver it should correct severely and move towards 20 USD levels.

Silver - year chart with expected pattern for the year 2012

 

I expect a sharp correction in price of precious metal but I am not a long term bear. I think that every dip in precious commodity will provide a long term buy opportunity. Just to keep things in perspective I have pasted this long term chart of silver. If we look at the given pattern silver is making a rounding pattern and in next 5 years it should break above the neck line and move towards 7 0 - 80 USD per ounce.

Silver Quarterly chart