This type of Chaos creates a level of uncertainty in the global markets that will prompt a massive surge in the precious metals markets as traders and investors continue to pour into precious metals as a means to hedge against fear and weakness in the global markets. At this point, we believe a move in Gold could easily target $1640 or higher and Silver could target just under $21 over the next 5 to 10 days. This type of move would represent a +7 to 10% rally in Gold and a +10 to 20% rally in Silver.
Pay attention to how the ES, NQ, and YM react to trading as markets open on Sunday and Monday evening as well as the news events related to these issues. Any escalation of tensions and fighting between parties throughout the world will likely shed shock waves throughout the global economy as well as prompt a contraction in price levels.
We attempted to warn all of our followers that the August 19th breakdown super-cycle event would likely present a massive potential for a price correction to the downside. These super-cycle events operate on a much broader scale and scope than most people realize. A delay of 20 to 30 days for an event to begin is equal to a span of 10 seconds in the larger scope and perspective of these bigger events. Pay attention as this move really begins to play out over the next 25+ days.
WEEKLY GOLD CHART
This weekly gold chart has followed our expectations from April/May 2019 almost perfectly. Our original target of just below $1600 has almost been reached. Now, with the global chaos playing out in China, Hong Kong, and other locations, we believe Gold could rally well past the $1600 and possibly move as high as $1640 to $1675 before attempting to stall and rotate.
What is interesting is that the price of gold is hitting new highs is most other currencies. This is something we will talk about in another article here shortly, so be sure to opt-in to our Free Market Forecast and Trade Ideas Newsletter
WEEKLY SILVER CHART
Silver, which has continued to impress even the most passive traders. It has continued to outperform Gold over the past 30+ days. Overall, our original target range of $18.75 – $21 is still valid, but we believe the true upside potential in silver is well past $34. Right now, we believe Silver could rally well past $24 as the chaos in the foreign markets rattles global investors.
If you followed our research over the past few months, you would have already known about these setups and trades. If not, now is the time to pay attention. The markets are going to react to this foreign market chaos by attempting to find true price valuation levels related to the fear and future economic expectations of the entire market. Get ready for some really big moves over the next 8+ weeks.
As we’ve been suggesting for more than 12 months, 2019 and 2020 are going to be fantastic years for skilled technical traders or subscribers of our Weal Building Newsletter. The potential for big trades (20% or more), like our recent UGLD 24% trade, will continue to set up in different sectors and global markets. All we need to do is stay on top of the opportunities to find ways to profit from these moves.
This article was originally posted on FX Empire
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