We have been looking for technical signals to go long in the precious metals, and we may be seeing that today in the chart of the U.S. Dollar Index. Last Tuesday the dollar "gapped up" dramatically and nearly touched 95 then "gapped down" the next day to 94 leaving behind what is called a "bearish island reversal" pattern. This happened at the top of a strong rally and could indicate an exhaustion of the rally to be followed by a significant correction. Support at the 94 level seems to be breaking today so that correction looks imminent. A drop in the dollar now would be just the thing to kick start a rally in the precious metals, and both gold and silver seem to be starting new medium-term cycles (see recent blogs on gold and silver) and ready to move up. This looks like a good time to go long in both metals. We can base our stop loss for this trade on gold breaking below $1282 and silver breaking below $16.06. (If one breaks and not the other we may stay long as it would be a case of bullish divergence). Going long in gold and silver today.
Crude oil prices dipped close to $64 earlier today and are closing above $65 (a bullish sign), and we are right in the target range for crude's medium-term cycle bottom (which is now due) at the end of a reversal zone. This looks like a good spot to go long in crude. We can set a close stop loss here on a close below $64. Going long in crude oil today.