Weekly Hot Take - Volatility party

16/10-20/10

Hello friends!

Welcome to another weekly hot take! I’m extremely pleased to tell you that I’m fully recovered from my horrible cold. I hope the attentive ones caught the tweet in private where I told them to enter back into some silver positions! If these geopolitical issues continue, metals will be much higher in a couple of weeks.

We will dive straight into the charts as there were a lot of events that happened in the last 2 weeks.

Precious Metals

XAUUSD

(Monthly)

The monthly candles have finally pulled a monster reverse after briefly losing the monthly EMAs, which are the momentum indicators that we have been using for a very long time. Since we are now back above those indicators, I want the monthly candles to start closing back above these EMAs again. Only then can we start looking for $2100+ gold.

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(Weekly)

The weekly chart shows us the EXTREME bounce from the lows, increasing the odds that we have made another ICL to 95%. This also implies that we should start breaking out of this dreaded sideways zone and heading towards $2100+ gold prices.

The blue resistance lines remain valid, while we want to stay above $1923 from now on. As long as we are above that level, I give my full GO to all long positions. Most major miners have made very big moves, and I expect the juniors to follow soon. So I will be scooping up plays that are leveraged by the metals prices right now. Think about some silver names that have been around for some time, which go 6x-10x every time metals have a strong leg up. Those are the names that I am buying right now!

(Daily)

In elliot-wave terms, we should have now fully completed the bigger wave 2 within wave 3. I’m expecting the coming weeks to be incredibly strong to the upside. Any deviation from a very strong price action will lead me to be more careful again with trading positions. First target $1974, then previous ATHs.

XAGUSD

(Monthly)

Silver has to prove more as we are still below the monthly EMAs, but once this breaks, the GSR-ratio will also further breakdown, and silver will be catapulted towards $30 (or higher) again. $22 is a hard stop from here on out for all leveraged long positions.

(Weekly)

Crazy how they closed silver previous week right on the extremely important $21.61 level that has been on my charts since last december. We need silver to follow-through next couple of weeks, and finally, when silver destroys the $26 resistance then the whole sector will pull multiples.

(Daily)

Same story on the daily charts, still some work to do, but extremely promising priceaction so far. Gold takes the lead at first, and then silver will take the overhand. Time to position in those names that are leveraged to the silver price is NOW!

Thank you!

Hope you all enjoyed this weeks overview of the precious metals! If you liked this overview, make sure to like, comment and subscribe!

To summarize:

1. Go on all long positions with some hard stops at $1923 and $22, usually best to wait for pullback and then go in with a good stop.

2. I’m going heavily into leveraged juniors to the metals prices.