Weekly Hot Take - Rocket Recovery

23/10-27/10

Oct 22, 2023

Welcome all!

Hello everyone, and welcome to another weekly hot take! This week we will look at the insane recovery from metals. It was interesting that they had everyone, including me, fearing for lower levels when those $22 and $21.6 support levels in silver broke down. But that is how this metal sector tends to move. They scare everyone, and only then do we move back up.

Let’s have a look at this weekly report below!

Precious Metals

XAUUSD

(Monthly)

To be honest, the strength of this monthly candle has surprised me! This even leads me to think that the breakout into uncharted territory has become much more likely, definitely if we can close above $1974 for the monthly close. The strength also resembles the 8-year cycle low, so we can expect a couple of months of strong upward pressure if we remain above the monthly EMAs.

In short, it is very bullish.

Refer a friend

(Weekly)

The weekly candles also demonstrate this powerful reversal, backed by geopolitical issues. With current strength, a pullback week is definitely possible, but as long as we close the month above $1974, i’m fully long gold with targets of $2300+ over the next months.

(Daily)

We keep our levels intact, $1974 and $1923 are strong supports and as long as those stay intact we can look at $2077. I’m in full buy mode, actually I’ve filled my portfolio already again from full cash to full positions. Silver juniors & some gold juniors.

XAGUSD

(Monthly)

This beautiful monthly picture shows the same wick as last ICL. For silver we see that it is still a bit constrained by the monthly EMAs and the ridiculous amount of sideways chop the past couple of months. One thing is for sure, if gold follows-through on the strong move then silver will follow. Exactly that is what will give the insane % returns, the breakout of silver above $26 and then towards $30.

Refer a friend

(Weekly)

On the weekly chart, we can see that silver always got smashed back below the weekly EMAs. The goal is to have 2 strong weeks above the EMAs so that we can leave this choppy priceaction behind us. The only thing I can say is that the window to buy the cheap silver juniors will be gone when we break $26. That’s why we are slowly buying into the depressed prices of these juniors. Just one example is $SCZ.v a silver junior that goes crazy with high silver prices as their AISCs are high. I buy right now, because when silver rockets into the higher ranges these will provide insane leverage on the silver price. I can give many more examples but that is for in the private twitter ofc.

(Daily)

Two daily closes above $24 silver would initiate the attack on $26 silver. That is why we first watch the $24 level and from there on we will analyse what the next steps will be.