Gold, silver, painful but bullish

All week we have been writing about the pain of congestion; Thursday was the tip that, although consolidating, the trend is bullish. With gold and silver sitting in tight ranges and a couple of things have developed, higher lows and solid bounces off support.

Silver is slightly more bullish than gold right now and has a chance to break out to the upside today. If you look at a chart, you can clearly see the significant resistance level at $28.50. If silver can break above, we could be off to the races.

Although gold is in a similar pattern and is making higher lows, it also appears to be making a new resistance level at 1900. The same action applies to gold. If it can break above $1,900, gold can go a long way.