Other markets on May 24, 2018: outlook


Here are my discretionary thoughts on forex, commodities, bonds, and cryptocurrencies. I only trade the stock market.
Go to the homepage for my latest thoughts on the markets.

Thoughts

  1. U.S. Dollar Index has exactly touched its 94-95 resistance zone.
  2. Gold and silver’s risk:reward are medium term bullish because the U.S. Dollar is medium term bearish.
  3. Bitcoin is getting closer to its $7300-$6500 support zone.

2 am: USD Index has exactly touched its 94-95 resistance zone.
The U.S. Dollar has exactly touched the lower end of its 94-95 resistance zone (previous tops on October 8, 2017 and December 12, 2017).
The USD might go a little higher in the short term (e.g. to top end of the 94-95 resistance zone). But its’ medium term risk:reward is bearish. Focus on risk:reward instead of catching exact tops and bottoms.

2 am: Gold and silver’s risk:reward are medium term bullish because the U.S. Dollar is medium term bearish.
Gold and silver have a strong inverse correlation with the U.S. Dollar right now. The U.S. Dollar’s risk:reward is medium term bullish because it is in the 94-95 resistance zone. This makes gold and silver’s medium term risk:reward bullish.
Silver hasn’t broken down below its support range despite the USD’s rally. Imagine how far silver will rally once the USD’s rally is over.


2 am: Bitcoin is getting closer to its $7300-$6500 support zone.
Bitcoin is getting closer to its $7300-$6500 support zone, as outlined yesterday. A more accurate support zone is $7000 – $6500.

Read Other markets on May 23, 2018: outlook

Bottom line

I only trade stocks. These are just my thoughts and outlook on other markets.

  1. Gold and silver are in bull markets.
  2. I’ve decided to buy some gold and silver as long term investments.
  3. The U.S. Dollar is in a bear market.

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