The past two months we have seen all the focus of traders and investors be on the equities market, and rightly so as stocks run higher and higher. But there are two commodities that look ready to explode: gold and oil (actually three if you count silver).
Below are the charts of gold futures and crude oil four-hour charts. Each candlestick allows us to look back one to two months while still being able to see all the intraday price action (pivot highs, pivot lows, strong volume spikes, and if they were buyers or sellers...).
The four-hour chart is one time frame most traders overlook, but I find it to be the best one for spotting day trades, momentum trades, and swing trades that pack a powerful "yes, quick" punch.
As you can see below with the annotated charts,
both gold and oil
are setting up for higher prices in the next one to two weeks from a technical point of view. That being said, we may see a couple days of weakness first before they start moving up again.
Watch detailed video analysis here
Four-Hour Momentum Charts of Gold and Oil:
Editor's Note: Chris Vermeulen offers more content at his site, TheGoldAndOilGuy.com.
No positions in stocks mentioned.
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