Weekly Hot Take - Resilience

12/06-16/06

Welcome Friends!!

Hello everyone and welcome to another weekly newsletter! I hope everyone is having a nice weekend! This week we will analyze the call we made last weekend and also make some further predictions for next week in the gold and silver markets.

The episode of last week was called 'Surprises to the upside’ ! We mentioned that we were very bullish due to our analysis of the momentum indicators we used and a general sentiment check. We confirmed this week that we were again completely right with these predictions, as silver made a nice move higher.

Let’s have a look now at the upcoming week! If you wish to keep reading the newsletter feel free to grab a 7-day free trial or (monthly/yearly) subscription!

Precious Metals

XAUUSD

(Monthly)

The monthly candles show us that we are still consolidating sideways, right below the $2077 level, or the all-time high for gold. Given that we are consolidating sideways instead of dropping hard, we can interpret this as bullish or resilient price action. We maintain our upside bias as our monthly momentum EMAs indicate that we are going higher.

(Weekly)

The beautiful weekly chart shows us that we have again retested the weekly EMAs, which indicated an ICL last time. Given the length of the drop this time, I’m assuming that we are forming another higher ICL here already, which will be confirmed with a swing low. After that swing low, we can expect to see the ATH break quickly, as also mentioned last week.

Let’s look at the daily candles now, where we highlight specific targets:

(Daily)

We are forming a beautiful low here on the daily gold candles as we are trying to break above the daily EMAs, which will signal the next leg up. I’m cautiously optimistic that this will break to the upside, just as silver did last week. Target $2100+

XAGUSD

(Monthly)

Talk about a bullish looking chart ;-)

The monthly silver candles have backtested the downward-sloping trendline and are now progressing to the upside, just as we have been saying for the last couple of weeks. I’m very optimistic that another attempt at the important $26 area will allow the bulls to break through. I’m bullish.

(Weekly)

Same pattern as on the monthly candles! Here, I’m even more bullish, as silver broke above the weekly EMAs for a weekly close. The $26 retest is coming, and then the break to $28. By the way, name another newsletter that is this clear about direction. Comment below:

(Daily)

Beautiful bullish setup, as we might also be coming out of another early ICL and DCL here. Another new high will get all the other newsletters ‘sure’ again. But remember who calls before it happens and who doesn’t ;-) ! The $26 target is first, and then we re-assess.

DXY

(Weekly)

I've talked about the $103 level many times. This is very likely another shakeout before we continue the declining portion of this big bear leg in the US dollar. After this re-test is done there will be even more fuel for gold and silver.

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Have a great rest of the weekend!