First off, I want to inform everyone that I am releasing my FX Currency service to the public for 30 days absolutely free. If you are interested please email me at NassarInvesting@gmail.com
I hope everyone enjoyed their weekend, and is all prepared and ready for the trading week ahead. Last week I released two blogs about SPX on short term time frames that worked out very well! That is a small sample what we do in our premium membership on a daily basis.
This blog will be a little different I basically want to cover a few cross market correlations that I follow and why the whole metal sector looks like it may be setting up for a substantial bottom and turn. I want to emphasize that this is not a forecast just simple observations that I have noticed over the weekend.
Above is a chart of Gold and Platinum overlay with one another with their correlation strength below the graph. As you can see they trade relatively in sync with one another with platinum clearly showing weaker price action since 2007. During the 2008 financial crisis Platinum witnessed a much deeper pullback than Gold did, the pullback was quickly recovered in the years to come but then once again saw substantially more weakness than Gold did. The point I am trying to make is that Gold is showing much more positive price action in the recent years and when their is finally a turn and a rally I would definitely suspect Gold to outperform.
Below you will find a daily basis of Platinum breaking up from a inverse head and shoulders pattern with significantly strong healthy price action.
In this next chart below you will clearly see the relationship between AUDUSD, Platinum, and Gold. It is significantly clear that the AUDUSD and Platinum have a very strong correlation. I have already displayed a chart of Platinum breaking out, now look below and check out how the AUDUSD Forex pair looks to be breaking out as well, which obviously fairs well for metals.
Happy trading everyone - Trade well, trade smart, and trade your own game plan.