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GLD

China Tensions to Push Gold Over the Top?Technically, gold has been more or less bulletproof since March, finding strong demand on every minor pullback. If the "China Trade War" period is any guide, we are very close to a breakout topside. As long as GC1! stays in the upper half of that regression channel, you're supposed to get long and/or stay long. Bulls may need to wait for the 50-day to catch up so be willing to be a little patient. Our target remains $2,000 by Labor Day and $3,000 by the end of 2021.
COMEX:GC1!Long
by Apollo421
Gold to Silver Ratio FallingThis ratio shows the amount of silver it takes to equal one ounce of gold in price. When the ratio is rising it means that gold is outperforming silver; when the ratio is falling it means that silver is outperforming gold. The gold to silver ratio is currently at 106 and falling after hitting an all-time high of 126:1. The average ratio in modern times is about 50:1, with the long-term historical average dating back 5,000 years being closer to 15:1. In recent times, 80:1 was about the peak we would see in the ratio before it would fall again, so the recent jump to 126 was more than likely a once-in-a-lifetime event as silver became severely undervalued compared to gold. The chart currently shows three yellow price candles which indicates that extreme bullish volatility was experienced in the move up as gold outperformed silver. This was most likely due to investors fleeing to gold due to its main function being a store of value, while silver failed to see the same gains due to it mostly being an industrial metal, and since global production has dropped off during the virus outbreak silver was not in high demand. That trend appears to now be shifting in silver's favor due to the extreme disconnect in the ratio. The three yellow price candles show a strong move up on the first yellow candle, followed by a second yellow candle with a small body and long lower wick, and now the current price candle is retreating. This three-candle pattern resembles a hanging man reversal candle pattern with the second yellow candle being the hanging man candle. This occurs when the price of an asset sees high demand, and then a sudden pause as traders become indecisive, followed by a reversal. This pattern tends to mark the top of price advance, and since we are looking at the gold-to-silver ratio it likely means that we have seen the end of gold outperforming silver, at least in the short-term, and can expect silver to now begin to outperform gold. The expected move going forward is a decline in the ratio back to 80:1, and more than likely being followed by an undershoot back down to 50:1. If you're playing precious metals, now would be a good time to go heavier in silver trades and then convert back to gold when the ratio hits 50:1 or lower.
TVC:GOLDSILVER
by PrepForProfit
17
Litecoin Hinted at Bitcoin's Move Up, More to Come?Apologies for not posting yesterday. I was trapped with work and mentally drained from all the news coverage of our Fed Chair Jerome Powell. Honestly, it was a disappointment in terms of price action. For stock market bears, today there has been a lack of follow through to the down side. Yes, that should keep you up at night if you are short this market. The gold breakout was...meh. Oh and Bitcoin did what it does best and filled its ridiculous gap early this morning. Let's get into some charts. Today I'll focus on Litecoin, Grayscale Bitcoin Trust, SPDR Gold Shares, and the United States Oil Fund. Litecoin Warned Us and it Delivered A few days ago I posted on how Litecoin was retesting support at 40 and may hint of a Bitcoin rally. I explained that it is informative to use other altcoin charts to gauge the future direction of Bitcoin. We reviewed Litecoin and it delivered. Bitcoin ripped from early week lows and has now filled the infamous 1200 point CME gap. Just ridiculous . However, the Litecoin price is lagging Bitcoin significantly (red flag). Below is the daily chart of Litecoin. As you can see, Litecoin is rallying off the lows but the lack of follow through should be concerning. In the coming week or two there is also the risk of a Head and Shoulders reversal top forming. Could this reversal pattern provide us with another hint for Bitcoin? Below is the daily chart of the Grayscale Bitcoin Trust (GBTC). Notice the lack of follow through for the bulls on the daily candle close. I view this as a sign of exhaustion which could lead to consolidation or a reversal. GBTC will be an important chart to watch in the coming weeks. For crypto in general, there are signs that are pointing to continued consolidation, with potential of further dips to as low as 6,000. In the meantime continue to BTFD and sell into rallies. Bias: Bearish . Follow through ASAP Maybe I am impatient, but gold needs to follow through asap! Below is the daily view of GLD. What we see here is potentially the next steps to a all-time high test . Momentum is beginning to build as GLD is breaking out from a month long symmetrical triangle. Don't short here, the trend has been bullish and the with the current state of the global economy there may not be a safer place to stack your cash. With that said, there are levels of support I would like GLD to hold. See below the 4-hour chart of GLD. A break below 161 support and there is cause for concern. In the interim my bias remains.... Bias: Bullish . Onto Black Gold I haven't talked about any oil stocks on this channel yet so why not begin with USO. Below is the 4-hour chart of USO. For the last 10 days USO has been in a sideways consolidation known as a rectangle . These types of formations often take form at the beginning of major trends. Last point on rectangle consolidations, is that they rarely have false breakouts outside of the rectangle. Whichever direction USO breaks will likely define the trend. Keep an eye on this chart as it could be a big winner heading into the summer. Short term, Bias: Bullish . Tomorrow is the weekly close. In the morning I'll be reviewing Zoom and possibly Tesla. I hope you have a great evening!
COINBASE:LTCUSD
by DailyClose
1
Bitcoin to 7300 While Markets Follow Lower, Except for Gold!A great deal of uncertainty continues to plague the markets. It is very notable in how markets are being traded during the session. Today, I want to run through a number of charts before Fed Chair Jerome Powell speaks tomorrow. Let's touch upon Bitcoin, the Euro Stoxx 50 (EU50), the Invesco QQQ Trust (QQQ) and SPDR Gold Shares (GLD). Markets Finally Signaling Reversal? And for the 100th time we call the top! Yea, that was a joke. All I know is that markets are looking top heavy. A larger reversal pattern is more likely in play. Though, we have no knowledge of yet. In the interim all we can do is play what the market has given us at the close. Let's begin with the EU50. I touch upon this chart a few day's ago when I noticed that the EU50 was vastly under performing U.S. markets. See the 4-hour chart below. Currently, the EU50 is breaking down from a bearish pennant. Support is around the low 2770's. We will continue watching Europe closely this week. Keep in mind Europe is easing restrictions and the economy is opening up. The economy is still vulnerable to closure. Bias: Bearish . Next, let's review the daily close of the QQQ. Below is the daily chart. Since the March low, I believe today will likely mark the most bearish daily candle close of the entire rally. Today produced a bearish engulfing candle, engulfing the previous two days. Of course now we need follow through. On top of the bearish engulfing candle is the rising wedge pattern. A few days ago I mentioned that we could see a throw over. A throw over is a common occurrence and happens when price over shoots the ascending boundary briefly. Although still early to confirm whether this is a real reversal, I wouldn't be buying any dip just yet. Bias: bearish . Last bearish chart. I promise. Here is Bitcoin's 4-hour chart. Yes, I know we are heading to the moon and Bitcoin should be valued at 100k. But let's press the breaks a bit. Bitcoin has rallied over 100% since the March low. If you hadn't taken profits, I am sorry. Go ahead and buy the dip around 7300 support. However, If Bitcoin continues to consolidate at these levels I will begin to flip bullish for a relief rally. For now.... Bias: Bearish . GOLD I promise I am not a permabear. My proof? Below on the daily GLD chart. I am not going to kid you, the longer this pennant consolidates the more nervous I am getting. Tomorrow, I do expect the pennant consolidation to resolve itself. The Fed Chair words could determine the trend direction of Gold. Currently, I am long GLD. The close was promising today. I'll be making a decision whether to hold or sell tomorrow. Currently... Bias: Bullish . Tomorrow is HUGE The markets are either consolidating or at resistance. If you are trading inverse ETFs they are at support. Tomorrow when the Fed Chair speaks he will move markets. Regardless of what happens, there will be ample opportunities available afterward. Talk to you all tomorrow!
COINBASE:BTCUSD
by DailyClose