I have seen a ton of failed breakouts this summer, but I still think this breakout has potential. The reasons I think this breakout has potential are as follows:
- Breakout occurring on strong volume
- Most other commodities and commodity currencies are falling, so gold is doing well on a relative strength basis. For example, yesterday, stocks were down, oil was down, natural gas was down, the Canadian dollar was down, the Euro was down, but not gold and silver.
- The long, medium, and short term trends are up (this is key):
