Weekly Hot Take - Waiting for direction

25/09-29/09

Welcome all!

Hello everyone, and welcome to another weekly hot take! This week, we will briefly discuss the progress that metals have made because there hasn’t been much movement in the past week. We’re still in the same ranges, waiting for a directional breakout (up or down). Afterwards, a flash newsletter will come out with fresh targets.

Let’s dive into the report:

Precious Metals

XAUUSD

(Weekly)

On the weekly chart for gold, we can see that we are still hanging around the important $1923 level, where a big battle is being fought between bulls and bears. Whereas gold is really in doubt if it wants to go up or have a further correction first, silver is hanging in rather strong. This makes it even more confusing as to what direction the metal will take. This further points to the strategy of just staying in cash until a new, clear directional trend develops itself. The main assumption, looking at gold, is also that we will have a flush out first before we start the next uptrend.

XAGUSD

(Weekly)

For silver, we can see the resilience and the chop in the little flag we have right above the long downward-sloping resistance. This looks like an extremely coiled graph where silver has the setup to be able to explode to the upside. However, prematurely entering a long position here could lead to a situation where we can’t properly manage our stops. That’s why we will wait for confirmation of direction.

Obviously, breaking the three wicks to the downside will unleash a waterfall sell-off, and vice versa to the upside. I’m seeing the potential sell-off as the ideal long-term opportunity coming up.

Thank you!

A short update this week, as the charts barely moved except for showing some more weakness.

For traders, the main strategy remains cash until we get a flush with a good R/R setup. Considering EW, cycles, and geopolitical troubles, this opportunity slowly inches closer.

For investors, now is the time to do some real DD because some stink bids might pay off nicely here on your favorite picks.

If you liked this weeks, short update then I would appreciate a like, comment or retweet/restack.

GG