Gold, Oil Setting Up to Explode
NEW YORK (TheGoldAndOilGuy.com) -- The past two months we have seen all the focus from traders and investors be on the equities market. And rightly so as stocks have run higher and higher. But there are two commodities that look ready to explode, those being gold and oil (actually three if you count silver).
Below are the charts of gold futures and crude oil four-hour charts. Each candle stick is four hours, allowing 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 timeframe most traders overlook. From my experience I find it to be the best for spotting day trades, momentum trades and swing trades which pack a powerful yet quick punch.
As you can see below with the annotated charts both gold and silver 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.
Four-Hour Momentum Charts of Gold & Oil: