$XAUUSD: Huge reward to risk bottom signal...$
I'm long PMs as of today, Silver and Gold acting strong after a weekly down trend expired recently. As per my long term yearly chart data, both $XAUUSD and $XAGUSD show long term uptrend signals active and are attractive to rejoin that potential scenario being oversold into support, while short term charts progressively turn bullish from daily upwards. Weekly had a signal which will expire next week and implies a potential mean reversion move towards $1927+ within the span of 6 weeks or less. The daily timeframe turned bullish today, reversing the recent weakness seen since March 8th when metals peaked. Select gold and silver mining stocks look very appealing with low valuations once again ($GFI, $SBSW, $PAAS, $AU, as well as $SCCO and $FCX to name a few).
Decent opportunity to go long with low risk vs potential upside in the case of a stagflationary scenario or a scenario where real rates stop going up or come down over time. which seems likely given demographics and fundamentals. For instance, the adoption of renewable energy and electric vehicles to resolve climate change and potentially address the energy crisis at hand could serve as a tailwind for precious and base metals and mining stocks in general. Long term investments can be done with funds that we can afford to lose or see cut in half to hold for long as necessary to let this trend play out, the trend in $XAUUSD is also a great short term trade, from where we can hold long exposure with big size, while risking small given the tight stop that is possible here at the signal invalidation. Long term positions are better done with physical gold and silver ETFs and/or mining stocks to buy metals in the ground, rather than dealing with futures or CFDs and their carry.
Best of luck!
Cheers,
Ivan Labrie.
Decent opportunity to go long with low risk vs potential upside in the case of a stagflationary scenario or a scenario where real rates stop going up or come down over time. which seems likely given demographics and fundamentals. For instance, the adoption of renewable energy and electric vehicles to resolve climate change and potentially address the energy crisis at hand could serve as a tailwind for precious and base metals and mining stocks in general. Long term investments can be done with funds that we can afford to lose or see cut in half to hold for long as necessary to let this trend play out, the trend in $XAUUSD is also a great short term trade, from where we can hold long exposure with big size, while risking small given the tight stop that is possible here at the signal invalidation. Long term positions are better done with physical gold and silver ETFs and/or mining stocks to buy metals in the ground, rather than dealing with futures or CFDs and their carry.
Best of luck!
Cheers,
Ivan Labrie.
Trade closed manually:
Below here we have risk of a 'buyers' trap' setup...
Rather watch from the sidelines, took a small hit but moved back to cash.