- The USD Index is finding support on prior resistance.
- Gold and silver’s price action is rather strong. They will make a big rally once the USD’s rally is over.
- Oil’s real resistance is at $75-$80.
6 am: the USD is finding support on prior resistance.
The USD broke out above its 92.4 resistance recently, and is now retesting that prior resistance as support.
The USD will head higher towards its 94 resistance as long as this 92.4 support level holds.
6 am: Gold and silver’s price action is rather strong. They will make a big rally once the USD’s rally is over.
Precious metals’ price action (silver’s in particular) is rather bullish. Gold and silver fell when the USD rallied, but they didn’t break below their support levels. Gold and silver (especially silver) are rallying hard now that the USD Index is making a small pullback.
This bullish price action suggests that gold and silver (particularly silver) will make a big rally when the USD’s rally is over. Remember: commercial hedgers (“smart money”) are extremely bullish on silver.
1 am: WTI oil’s real resistance is at $75-$80
Some traders shorted oil below $70, thinking that $70 would be oil’s resistance. I disagreed a few weeks ago and said that oil’s real resistance is at $75-$80. I stand by my previous prediction.
$76 is oil’s 61.8% retracement of its entire 2014-2016 bear market.
$75-$80 is also Saudi Arabia’s target price. Saudi Arabia needs to push oil to this price before they IPO Saudi Aramco.
Read Other markets on May 10, 2018: outlook
I only trade stocks. These are just my thoughts and outlook on other markets.
- Gold and silver are in bull markets.
- I’ve decided to buy some gold and silver as long term investments.
- The U.S. Dollar is in a bear market.
- Cryptocurrencies might be starting a new bull market (I’m not so sure about this one).