Don’t Take Your Eyes Off These Markets
16
November, 2017
With all the excitement in the equities and amazing moves in new fangled things like Bitcoins, its easy to forget that there are other markets that make major moves. And, indeed, many of these markets have been relatively quiet…
But low volatility is just the pre-cursor to high-volatlity. Volatilty cycles – from low to high – always. So these markets are just ripe for breakouts, especially when you consider the chart patterns that are forming in some of them.
Because these are early warning signals, there are no trade setups yet. But things are getting close. So we’ll show the patterns below and then maybe follow up as they get closer. Throw these on your watch list – just a few years ago, these were THE markets to trade. Now it seems as if most folks have forgotten that they exist…which is usually when interesting things start to happen…
GOLD: WEEKLY CHART
CRUDE: WEEKLY CHART
Chart images provided by Tradestation Charting Software
SILVER: WEEKLY CHART
30 YEAR BONDS: WEEKLY CHART
MASSIVE CONSOLIDATIONS
The first three charts above (Gold, Silver, Crude) are all sporting MASSIVE weekly consolidations. These are early days yet but when these things breakout, they will be monstrous.
The final chart is the 30 year bonds (traded on the CME). This one is at a critical point. Resting on an 8 year trendline, all the pundits think this is going to break, driving interest rates higher. But, looking at this chart – that just feels wrong, doesn’t it? The scenario least expected is that interest rates will FALL. But if the trend line shown in the fourth chart above holds, that’s exactly what will happen – maybe even to the point where rates fall to another new low record!
4 Massive Consolidations
Photograph provided by shutterstock.com
Wrap Up
There’s not much for the wrap-up in this article. The four charts above bear watching – pull ’em up once a week or so but it’ll probably be a few more months before they do anything exciting.
Other charts to keep an eye on – grains!
PS: don’t forget – if you have questions about the techniques used in this article, a simple 1 hour technical analysis coaching session can get all your questions answered!
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