Charts say it all.
Gold
Gold has formed a bullish IHS (working on the right shoulder) and ascending triangle formation. Gold momentum is obviously ignoring the speculative stock market pumps based on Chairman Powell rhetoric. If this is a sign of trouble ahead (equity markets leading fundamental policy decision) I don't know what is. Gold also made a bullish move above it's 200 WMA and 200 DMA, which is huge! Doesn't mean it can't dip below it, but these are long term trend indications. The falling wedge pattern has a breakout equal to the 100% extension from the Nov 2015 lows.
Bitcoin
Bitcoin showing similar strength, but not confirmed as much as Gold yet. BTC still trending below it's 200 DMA, but it has confirmed 200 WMA as critical support at 3.1k. A break below this will truly be devastating for the bulls and expect selling pressure and another capitulation of 2-3 days. I will be switching from bullish neutral to heavy bearish. IHS is still forming the right shoulder and a break above $4,250 will confirm this pattern to 78.6% extension from the low.
There are many analysts which are calling for a 10-30% drop in gold prices due to bullish expectations of equity markets for 2019. Let's not forget equity markets are in the final hyper-wave rally. Most assets and indices are in their 5th hyper wave and the sky isn't the limit, the limit is the sky. If fundaments are ignored yes Amazon will be another 1T company possibly. Everyone will feel euphoria again and believe this run will go on forever. The contrarian knows there is only so much left in the gas tank to propel markets in such a trajectory and with global growth concerns, geo political risks, debt crisis and downward pressure on oil prices it's only a matter of time those who have been accumulating a Gold position the last couple of years will be nicely rewarded.
Why invest in Gold? It's a hedge against human stupidity. Bitcoin will be the equivalent hedge, but needs more time to build that trust. Gold has a few thousand years head start :)
Just wanted to push out something different on the Gold front as I see so many shorts out there. If you have a longer term time frame any pull back won't matter. The overall context is still very bullish for Gold...and Bitcoin.
Cheers,
Bobby
Gold
Gold has formed a bullish IHS (working on the right shoulder) and ascending triangle formation. Gold momentum is obviously ignoring the speculative stock market pumps based on Chairman Powell rhetoric. If this is a sign of trouble ahead (equity markets leading fundamental policy decision) I don't know what is. Gold also made a bullish move above it's 200 WMA and 200 DMA, which is huge! Doesn't mean it can't dip below it, but these are long term trend indications. The falling wedge pattern has a breakout equal to the 100% extension from the Nov 2015 lows.
Bitcoin
Bitcoin showing similar strength, but not confirmed as much as Gold yet. BTC still trending below it's 200 DMA, but it has confirmed 200 WMA as critical support at 3.1k. A break below this will truly be devastating for the bulls and expect selling pressure and another capitulation of 2-3 days. I will be switching from bullish neutral to heavy bearish. IHS is still forming the right shoulder and a break above $4,250 will confirm this pattern to 78.6% extension from the low.
There are many analysts which are calling for a 10-30% drop in gold prices due to bullish expectations of equity markets for 2019. Let's not forget equity markets are in the final hyper-wave rally. Most assets and indices are in their 5th hyper wave and the sky isn't the limit, the limit is the sky. If fundaments are ignored yes Amazon will be another 1T company possibly. Everyone will feel euphoria again and believe this run will go on forever. The contrarian knows there is only so much left in the gas tank to propel markets in such a trajectory and with global growth concerns, geo political risks, debt crisis and downward pressure on oil prices it's only a matter of time those who have been accumulating a Gold position the last couple of years will be nicely rewarded.
Why invest in Gold? It's a hedge against human stupidity. Bitcoin will be the equivalent hedge, but needs more time to build that trust. Gold has a few thousand years head start :)
Just wanted to push out something different on the Gold front as I see so many shorts out there. If you have a longer term time frame any pull back won't matter. The overall context is still very bullish for Gold...and Bitcoin.
Cheers,
Bobby