Weekly Hot Take - Failed to hold the line
14/08-18/08
Hello friends!
Welcome everyone to another weekly hot take on the precious metals market. Today we will be discussing the progress that the metals made during their battle to hold the lines. If you wish to read the full report, you can try out the 7-day free trial!
Precious Metals
XAUUSD
(Monthly)
As we can see on the monthly candles, we are now closing in on the VERY VERY important monthly EMAs, which are our long-term momentum indicators. Moreover, we have breached the extremely important $1923 for a weekly close. Both longer-term indicators are now showing us that the bears have regained control. For the bull to regain control, we will need a weekly close back above $1923 within the next 2 weeks, AND the monthly EMAs must hold.
Let’s look at the important weekly levels next + important message at the end!
(Weekly)
The weekly candles are confirming what we saw the last couple of weeks: a big pushdown from the weekly EMAs that we have lost. The next target for the bears is now the $1893 level (previous “ICL”). I’ve read a couple of articles saying that the $1893 low wasn’t an intermediate cycle low, but we will have to re-analyze this as we have officially made another low here soon.
(Daily)
Looking at the daily candles, we see the strong downward pressure on the gold price as we are nearing $1893. It would be a usual continuation if we broke the previous “ICL” before we continued back up and regained $1923. Below, we’ve got $1850 as support and then $1800 if we were to lose the monthly EMAs.
XAGUSD
(Monthly)
For the silver monthly, we see that we have a big red candle already after 2 weeks into August. This shows us the significance of the bearish pressure. On the other hand, this leaves two more weeks for the bulls to try and restore the damage. We do not want monthly candles to close below these EMAs. Or the bearish strength will become too great and push through $22.
(Weekly)
The weekly chart also shows us an extremely clear picture of why we want $22 to hold at all costs. If this doesn’t hold, then we can start looking a lot lower again. But as long as this doesn’t happen, we should remain optimistic that we might do a brief test of the $22 zone and bounce from that level. Bears in control for now.
(Daily)
We are very close to the $22 level; logically, we will test this in the near future. The RSI is also back in the oversold red box, implying that we are near a temporary bottom. The bulls want to follow the orange route; if the bears are strong enough, we will bounce off $22 and then break it on the following test.
Thank you!
I will send out important BUY or SELL signals on the private Twitter for the paid subscribers if we decide to enter a position around $22.
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