Crude, Gold and Silver - Bullish on the charts. What happens next?

Here’s a quick round-up of what happened in the commodity and currency markets last week to help you stay on the right side of the trade.

WTI Crude - Crude has made an explosive move, jumping more than 35% in just the last week. Monthly chart below.

Monthly chart of WTI Crude showing a breakout from a double bottom

For most of the past four years, crude has been largely range-bound with a slight downward bias, ever since it peaked around $130 on March 7, 2022 after the Russian invasion of Ukraine. Interestingly, it seems to take another geopolitical conflict to wake up this sleeping giant.

From a technical perspective, crude is now in an interesting spot. On the monthly chart, price has broken out of a double bottom pattern and closed the week above $91, right in a narrow resistance zone between $87.6 and $95. The last time crude reached this zone was in early September 2023, but it couldn’t hold those levels and fell sharply afterward.

The next move will depend on how price behaves around this resistance area. A strong close above $95 could lead to a move toward the previous war-time high near $130. Given the current geopolitical backdrop and the strength in price action, that is a distinct possibility - but as always, time will tell.

Gold & Silver - Gold and silver are showing very similar price action. Daily charts below.

Daily chart of Gold showing a bullish 1-2-3 bottom formation

Daily chart of Silver showing a bullish 1-2-3 bottom formation

Last Friday’s daily candle formed a bullish engulfing pattern at support, which appears to be part of a smaller 1-2-3 setup. If this structure plays out, prices could break out early next week.

Looking at the bigger picture, the broader pattern developing on the daily chart since the sharp sell-off on January 30, appears quite bullish.

Copper continues to move sideways with no clear direction for now.

EUR/USD - The EUR/USD formed a hammer last Friday at strong support of a narrow congestion zone below, part of a small double-bottom pattern that is yet to break out. Looks like a strong buy. Daily Chart below.

Daily chart of EuroUSD showing a double bottom formation at strong support

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