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First of all, thank you so much for joining me on this weekly hot take journey! I am grateful for your support and excited to have you along for the ride. Your presence helps to make this experience even more enjoyable and engaging. I can't wait to share my thoughts and insights with you and hear your perspective as well. Thank you for joining me on this journey and I look forward to connecting with you in the future.
Hot take mid-week update:
$XAGUSD (DAILY)
We can see that silver has made a rounded bottom low in the 17.5$ area back in the summer months. Many didn’t believe in the metals back then, funny enough many people are still doubting the metals rally by calling for a daily crash to new lows. I think we are to assume the rally is going to continue as long as certain levels are respected. As we can see on the chart we are currently having smaller daily increases in price, this means the fuel for upside is getting exhausted. As long as $21.5-$22 is being respected on a daily closing basis, I’m going to see dips as buying opportunities in the preferred securities. There is a scenario where I’m thinking a fake-out low to 20$ is also possible. However, a daily close below 20$ would be a HARD-STOP on all long trades.
$XAUUSD (DAILY)
For gold we see the same exhaustion pattern with a negative divergence. There is a good possibility we see a couple of cool-off days. A retrace to $1730 is possible here. For me there is an alert set at $1730 where we should be on high alert regarding our long positions. As soon as RSI has cooled-off again and we held $1730 on a daily closing basis, I think there is more fuel for a further rise.
Both gold and silver have provided us with decent rallies of 14% and 40% the past few months. On the sentiment scale you should understand that the bulls are still very sour from the past 2 years of mental f*ckery. So the bulls will be very much on high alert to close their longs that made small profits. For the bears they are screaming extremely loud on Twitter and other social media that a new low is coming. I don’t think it is correct to assume that a new low is coming as long as the hard stops are respected on a daily closing basis. So who is telling the truth ? The bulls or bears ? The takeaway is you have to have a plan for both. My opinion is that we’ve had a long rounded bottom and the weekly 9EMA and 20EMA are turned up, supporting the price up. As long as this weekly trend stays intact, the strategy should be to long the dips. As always we have HARD-STOPS where we want to pay attention regarding to a potential trend shift.
Weekly charts included :
$XAGUSD (WEEKLY)
Strong rally is intact. We’re stretched above the EMA’s and could see a small consolidation towards the ema’s. Long the dips as long as EMA’s are supporting the price.
$XAUUSD (WEEKLY)
Strong rally intact aswell. Supports are $1773 and high-alert level is $1730. As an example the rally before the 2020 august high also always respected the 20 EMA except for the covid flash crash. That is our guide here for the weekly trend.
This was the mid-week update for FREE! More to come!
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