Weekly Hot Take - Surprise to the upside
5/06-9/06
Welcome Friends!
Hello everyone, and welcome to another weekly newsletter! We are a little late this week as explained in the private Twitter but nonetheless let’s dive right into the precious metals analysis!
Precious Metals
XAUUSD
(Monthly)
The monthly candles show a small consolidation candle between a couple of very important levels being $1974 and $1923. During this consolidation/pullback, we still didn’t even touch $1923, so I’m interpreting this as extremely bullish. I also firmly believe that this last pullback was a shake the tree moment to get all the bulls shaken out.
(Weekly)
On the weekly candles, we notice that we have bounced off of our momentum indicators, the EMAs. Price action seems similar to the previous ICL/touch on the weekly EMA. Also looking at current priceaction I think we have the right setup to do a big push to $2100+. Summarized = BULLISH ON THE WEEKLY!
Let’s have a look at the daily candles next.
(Daily)
The daily candles are still following the exact path that I drew two weeks ago. Very compelling to see this exact price action. Next up: —> $2100+ in a couple weeks. Meanwhile, thanks to this last shakeout, I was also able to increase my position significantly in all of my gold junior positions. Ready for this next leg upward.
Now we will have a look at silver below:
XAGUSD
(Monthly)
Extremely good looking for the silver monthly! I’m super optimistic here while it feels like the sentiment is at extreme lows. Surprises might come to the upside here. Above the monthly EMAs too.
(Weekly)
The weekly candles show a nice bounce on the weekly downward-sloping trendline. I expect the weekly EMAs to be recaptured pretty soon as silver follows gold for the next leg higher. Both gold and silver are making clean higher highs and higher lows, with RSI slowly creeping up each leg. Beautiful price action.
(Daily)
Amazing bounce out of the oversold red zone. We are now trying to recapture the daily EMAs and are ready to burst much higher. The EMAs are also pinched together, which signals a big move is coming, and my money is on UP! Also here, we see the zoomed-in version of the retest on the weekly downward-sloping trendline. Targets for silver are the very important $25.77-$26.1 zone and afterwards $28 silver.
Summary
Gold and silver are
looking extremely good coming out of this current low!
Gold targetting $2100
Silver is headed for $25.77-$26.1 zone
Surprises will come to the upside given the extremely bearish sentiment