Weekly Hot Take - Breakout time
8/05-12/05
Welcome everyone
Hello friends, and welcome to another weekly hot take! We are progressing very nicely in the current daily cycle. This month, I expect additional acceleration in both metals and junior mining stocks. In this week’s newsletter, we will go over the most important levels and targets! Also, we will have a detailed look at how the miner indexes have been progressing. Since there was a lot of demand to make a newsletter public again after months of being private only, here’s a FULL free update this week!
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Precious Metals
XAUUSD
(Monthly)
The monthly candles for gold are still looking extremely good, which means that we stay with our assumption that the 8-year cycle low on gold is already in. The month of May is still very young, and we've already tested ATHs again! Given that the monthly RSI is also way below overbought, we still have much more room to run on the long-term candles. The EMAs are also starting to curl up in a more aggressive way, supporting this longer-term uptrend to unseen highs.
(Weekly)
In this lovely weekly view, we can see that we are inching closer week by week to that $2077–$2078 level, which is the last line before we are in blue-sky territory. For gold, I’m looking at $2300 for a first blow-off top! Expecting this breakout sooner rather than later!
(Daily)
For the daily cycles, we are way past our DCL point of the last daily cycle, meaning we should be in a new daily cycle that should breakout at any moment. To be as unbiased as possible, we need to watch out for early cycle failures because that would indicate that the longer uptrend cycle is breaking. But this isn’t the case at all so far. Looking at our EMAs, we see that we are being pushed upwards step by step. I expect the $2077 to give way pretty soon to the upside.
XAGUSD
(Monthly)
With a very wide monthly view, this chart still screams bullish to me! We are having a big challenge at the $26,1 level, and after that, I expect a swift move to $28 and then $30 per oz! The bigger targets for a first blow-off top might even lie way above $30 still within this weekly cycle, but that’s thinking too far ahead with these important resistances that we have to clear first.
(Weekly)
For the beautiful weekly view, we can expect a first push to $28 once $26,1 breaks and then a retrace again before the HUGE breakout in silver too! I’m very excited, as the silver juniors will pick up the pace significantly.
The daily chart is basically the same; we are being pushed up with the EMAs and our momentum indicators that we have been using for weeks. We remain well above the EMAs, and vice versa. Let’s dive into the mines right now!
MINERS
GDX
(Monthly)
Expecting GDX to reach $41,6 rather quickly once gold breaks its ATH or even a stretch to $45 bucks is possible before another correction.
SILJ
(Monthly)
After a severe downturn over the past couple of years in SILJ, we are finally breaking above our monthly momentum EMAs for SILJ! This is extremely bullish news, as that means that the junior silver miners will start to rocket hundreds of percent very soon!
Summary
Gold is expected to break into blue-sky territory.
GDX to follow this move to $42 and then $45 rather quickly
SILJ getting above the monthly EMA9 and EMA21 for the first time in YEARS, many 100’s of %’s to be made very soon in silver miners
THE SILVER PARTY WILL START ABOVE $26,1
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Thanks a lot, friends, and see you all next week!