Gold broke major resistance level at $1,780 - a huge monthly resistance level. This is a very bullish sign, but it’s a little early to pull out the gold $2k shirts and caps. To validate the break of this level we want to see gold push away from this level and create some time and space, this will give the break more weight and confidence. Time and space away...
The biggest level on the FTSE100 charts is the 6,000 support, on the 4 hour, daily and weekly level this is an area of support. What does it mean if support is shown on a number of time-frames? It means everyone trading the FTSE100 has the 6k level on their charts, it's also a psychological level. The 6k level was tested 3 times in June, each time bouncing back,...
The whole world has their eyes on the S&P500 using it as a gauge for what type of recovery we will be getting. The most important point on the chart is the 3,000~ area, this is acting as support on the 4-hour, daily and weekly. If a single level is acting as support on multiple time-frames, it’s an area being watched by EVERYONE, people are looking to go short...
Today gold finished the week at $1,743 - just on top of monthly resistance. This is an important area because it's on every trader's gold chart, and is prone to fake outs for that reason. As pointed out in my chart this area has produced 4 fake outs to date since May, but is this one different? What I would like to see next week is for gold to stay above this...
On the daily chart we can see that the EUR/GBP has been trading in a range of 0.887-0.900. Yesterday it broke the 24 day consolidation by breaking through the 0.900 daily resistances on the daily level, which is a BIG DEAL. Throughout this trading pair’s history the .900 level has acted as resistance going as far back as 2011, which tells me it’s an important...
Over the last few days the FTSE has been ranging between 6,500-6,000. Monument (RSI) looks mild, and the 9 day average is right in the middle of the candle. The FTSE has jumped is above the bearish support which is a good sign, but it's too early to know if it's a fakeout or a breakout. This market is going to need some good news to break above the 6,500...
In my last gold update I said the price of gold will depend on what happens in the economy. Let’s zoom out a little in this chart to see what’s happened since February this year. In March, gold like everything else in the world sold off in a mad dash for cash. After the dust settled many turned to gold in risk-off sentiment. Gold then moved another leg...
The FTSE 100 chart on the monthly looks pretty bad. We can see bearish divergence since 2007, with the market rally going off very little momentum, it briefly touched the oversold area once in 12+ years, which shows a lack of strong buying, and a bubble in the market. The first 2 arrows show the FTSE toying with the idea of breaking the Ichimoku Cloud (a...
Looking at the macro, we can see the GBP has been in a bear market against the USD since 2008, and then after Brexit it felt even more pain. So what happens next? The UK is currently applying a lot of fiscal and monetary stimulus to the economy, and negative interests rate could be on the way. This is a bearish signal for the GBP. You may say well the US is...
It looks like the lockdown may have been what oil needed to take oil out of its 12-year bear market. Oil has been trending downwards for over a decade, with sharp sell-offs pointed by the yellow arrows. The graph shows a very brutal bear market for oil. The lockdown did not help, reducing the demand for oil so much the price went negative. But was this the...
Gold mining stocks have a reputation on promising to deliver big but failing (see 2009-2011). I’ve been following the GDX since 2016 when I first started buying gold miners, and up until 2020, nothing really happened. The miners were in a bear market for 8 years and could not breach the $30 resistance, until April 2020. Does this signal the start of a new bull...
The S&P500 has been in its longest bull market in history, did that come to an end in March 2020? Is this a dead-cat bounce or is the bottom in and we should starting putting on our S&P500 40k hats? One sign of this being a dead-cat bounce is that since 2018, the RSI (an indicator of the momentum) has been declining while prices have been rising. In 2019 and...
This is a macro view of the price of gold taking into economic factors. To know where gold is heading in 2020, we first need to look into its past. From 1998-2011, gold was in a bull market which we can see with the rocket ships and price movement. From 2012-2016, the price of gold went into a 5-year bear market, stocks rallied and investors thought the world...
Bitcoin is an asset that needs momentum to move up, what lures 99% of people into Bitcoin is that they can make money very fast in a short amount of time. As Paul Tudor Jones said, Bitcoin is the fastest horse in the race . That is why people buy Bitcoin, they are looking for a thrill and probably listen to AC/DC. Gold, on the other hand, does not require...