We expect major upheavals in the financial markets over the next few years. In this article we explain our cyclical framework for these challenging times and why you should invest in commodities now.
Published: 16th of June, 2021
t o r c k c a p i t a l m a n a g e m e n t
6th of September, 2021 - by PreciousChartist
The following article has been written by PreciousChartist, a trader who has been trading very successfully in various markets for more than 20 years based on chart analysis. The article does not reflect the opinion of torck capital management and is not investment advice.
XAU/USD – Weekly
It was a good month for the bulls. That weekly candle marked a very nice low at around $1670. Two weeks later we even pushed through the base line which came a little lower over the past four weeks. At least now we have a very clean stop for any longs - $1670 needs to hold.
XAU/USD - Daily
On the daily chart the price action looks still a bit zic-zac style. You can see it very clearly with the Ichimoku cloud turning bullish/bearish in very short frequencies. But we are above the base line and already within the cloud. $1835 seems to show some resistance. I am confident if we break it on a daily closing basis the way is open to reclaim the recent local high at $1920.
XAU/USD – 4 hours
There is no difference to the daily chart but you can see it very clear that the price is being supported by the base line. Let us see if we are able to break the $1835 or at least keep the price above the base line. If we are not able to break it straight away we might fall back into the liquidity pool at around $1800.
XAG/USD – Weekly
Is it a bull flag or not? That is the question. It is not textbook like but it usually isn’t when you chart a volatile asset. I think the lower line of the flag should give some guidance. If we break it to the downside I was wrong and we are just in a very large consolidation that could go on at least for another 12 month. Bullish confirmation of the pattern is after a weekly close above $29.
XAG/USD – Daily
No additional comments. Keep an eye on the base line. Currently we are above it but the body of the cloud is still a bit away.
XAG/USD – 4 hours
Same story here. Nothing to add. But it is nice to see that even on the 4h chart we are above the base line and even above the body of the cloud.
GDXJ – Weekly
Oh-boy… We are still within that downward channel. We actually broke the lower band on a closing basis but jumped right in with the next bar. There is not much to add to this chart. Maybe one additional comment on trading volume. It does looks like that we decrease in volume on this downward channel. The bulls hope will be that the sellers are exhausted.
GDXJ – Daily
We are above the base line. That’s the only bullish sign I see on this chart.
GDXJ – 4 hours
Unfortunately, nothing more to add. Yes, the price is above the base line but we still have a massive bearish cloud to push through. Let us see if we have enough bullish power.