Gold is closing in on the noted level from the line that extends off of the 2020 and May highs and resistance since July near 1834. I’m ‘thinking’ pullback initially from the well-defined level but will be tracking for support beginning near 1800 since I’m of the mind that the broader trend is higher.
BTCUSD is off 13% since the top last week. If price drops under the short term lower channel line near 56830 then weakness will be considered impulsive and ‘waterfall’ weakness would be on the table. Watch for resistance near 61850. The weekly chart is shown below. This looks ‘toppy’ to me. Yes, ‘toppy’ is an official technical term. Former trendline support has provided resistance on the way up, a doji candle formed last week, and the rally failed after taking out the prior high. Seems bearish. Finally, is BTCUSD trying to tell equities something (see 2 charts down)
USDJPY has nearly reached the noted zone so pay attention. Aside from channel resistance, the level just above the market is defined by the late 2017 and 2018 highs at 114.55/74. A pullback from the zone would ‘make sense’. If reversal evidence arises, then there may be an opportunity to play the short side although 113.21 is in line for support (see below).
Silver has broken above and established above the 25 line so that line is now proposed support near 22.78. The inverse head and shoulders objective is 24.87, which is also the September high. 23.97 is pullback resistance. From a bigger picture perspective, SLV made a weekly volume reversal at the low 2 weeks ago (see below). Finally, silver has turned up from a 8 month channel and the bottom year+ range and sentiment is downright brutal as evidenced by articles such as EXCLUSIVE Banks prepare to scrap LME gold and silver contracts, sources say
Silver is bullish. The rally from the low is impulsive. The question is whether or not the correction is complete. Either price pulls back to 21.90-22.10 or price breaks above the 75 line (parallel just above price) and the top side of that line then provides support. A zoomed in version and possible path is below.
Silver turned up sharply today after dipping below the September 2020 low. Support is reinforced by channel support down here as well. Simply, the combination of well-defined support and extreme pessimism (numerous headlines include ‘plunge’) suggest that it’s time to turn bullish. I’m like the long side now. The first test is about 22.88.