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Gold bulls in the grinder - stocks perk up with Bitcoin. Opportunity lurking?

Commentaries & Views

Although gold breached the bottom of the channel I showed yesterday and did go on to print yet another low at $1,890 spot, the trade opportunity I pointed out – that is, a return to the top of the range, lives on. Price is fighting to stay in the clearly defined channel, as shown in the daily chart below; in fact, yesterday’s daily reversal candle adds a little weight to the trade probability, in my opinion.

While I am still looking for more concrete signs that a bottom that could lead to a sustained move back up is in for the metals (Platinum may be closest here), as a nimble trader, I remain very open-minded to engaging in short-term opportunities.

Am I wrong about the S&P filling the open downside gap I have been showing? Certainly, the market has been proving me wrong thus far. In hindsight, it is clear that no significant drop was likely ahead of Independence Day weekend, of course (I may need to adjust my tinfoil hat here). That said, contrary to some raging bears out there, I would be in no rush to short this market with any serious conviction. Nor would I be in a rush to add to long positions unless and until the price can get over 4500, which is the blue resistance level (shown prior) on the below daily chart.

And to finally, the weekly Bitcoin chart, presented without commentary, only a question; how does the below look bearish?

Thank you, and have a great long weekend

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.