Welcome all!
Hello everyone, and welcome to another weekly hot take! This week, we will talk about how silver is attempting to make another DCL and perhaps even an ICL.
Let’s take a deep dive into the report as we got a couple of important topics to cover:
Precious Metals
XAUUSD
(Monthly)
With about 3 days left until the first monthly candle of 2024, we are still hanging around the ATHs with no clear direction. I think we will need some more geopolitical escalation for gold to push through above $2080 since, for now, it looks like gold has run out of steam.
(Weekly)
We are almost on the weekly EMAs as support. If we look at previous ICLs, we can see that we always made a stoprun just below those EMAs, which leads me to think that a similar scenario might happen again where we test $1974 again.
(Daily)
The fact that we didn’t move up yet from the lows around $2000 is pushing me towards the possibility of a flush out towards $1974. This would still be good for the bulls, as we are just cleaning out overleveraged players before some kind of trending move initiates.
XAGUSD
(Monthly)
The silver monthly chart has wicked towards the $21.95 line once again. It looks to me as we are setting up for a major ICL very soon after which a very strong move to the upside will develop.
(Weekly)
On the weekly chart we see that we have a nicely formed wick, which needs to see upside above the weekly EMAs for the bulls to be in the clear. If we break down below current wick, then I expect a final waterfall into the LAST ICL before we break above $26.
(Daily)
The daily chart shows the bounce even more; the DCL is close to being confirmed but not yet. We need to get above both EMAs, and then a DCL will be confirmed. If silver proves enough strength and breaks above $26, we will change our strategy again to hold more silver companies. Until that happens, we stick to gold, zinc, and copper alpha plays.
Thank you!
I hope you enjoyed this week's short report. We stick to the same strategy as we let the metals fight it out in the short term. For anyone who has questions regarding our trading positions, we are in cash until further signals develop. For the juniors, we stick to alpha-gold, zinc, and copper plays.