Analysis and Forecast for GOLD, Bitcoin and Crude oil

 #OPINIONLEADER# Crude Oil

 

Oil is currently at an overbought zone following the indicators. The clamp in Economic actives in the US will definitely affect the prices of oil negatively.

Currently from my chart above you can see that a head and shoulder incomplete pattern formation has been spotted on the charts. Oil needs to pullback once again to the previous support at $65 per barrel since the last two weeks to complete the right shoulder Pattern formation. After this we can expect a further growth if this support holds again. Otherwise we could see lower prices below $65.

Analysis for GOLD

 

Gold has soared higher to a new All-time high at $1818.10 with Fed Reserve Chairman  Powell relaxing  moves on Tapering by end of the year.

Powell in his speech has given no signal towards an  imminent TAPERING , he had only stated that he was watching the employment and epidemic statistics closely. Of course the Delta Variant of the Covid plaguing the Nations particularly the US is definitely the major concern at the moment. From the focus of his attention given at the speech, it is very clear that the chances of announcing TAPERING in September either has been greatly reduced.

The market has reacted  with a strong Bullish Movement for these pairs almost immediately after Powell’s speech at the Jackson Hole symposium last week.

Powell has announced during the Jackson hole Symposium last week that the central bank is likely to start tapering its $120 billion per month bond purchasing program by this year, which is largely in line with the market expectations. He also emphasized that interest rate hikes will not immediately follow after tapering was over. With this positive news, it is very evident that the ultra-low interest rate market desired by investors is here to stay, benefiting most especially the digital and commodities sectors that is most sensitive to interest rates and tapering..

Consequently, the price of Gold has moved to a new ATH at $1818.10 and presently consolidating and gathering further momentum ahead of the new week. As a further consequence the US dollar had further  pulled back alongside Treasury yields showing a new confidence among investors to recommence investment in indexes and gold rather than in dollars. I expect to see Gold move higher after the present consolidation to the next resistance at 1880 before December 2021.

Analysis and Forecast for Bitcoin

 

The great rebound in Bitcoin since the Month of August has strengthened our convictions that we are currently in for a Continuation of the Bullish market that was suddenly disrupted in April. Gold is currently in for a strong Bull run take should take us firstly to the first major resistance at $105,000 before any second bear season again. Here I will give just two major reasons why I have remained Bullish on over the past weeks. Firstly, Bitcoin has been able to maintain the 200 MA at $47600 within the last 60 days showing a strong Bullish takeover.

 Secondly, The large amount of Bitcoin accumulations by institutions and often stored outside of exchange shows they are really in for a long term acquisition. According to on-chain analysis 84% of Bitcoin accumulated and stored outside exchanges have not been moved in the last 3months. This is a great Bullish indication for the long term.

Above all the outcomes of the report from the Fed Chair during the Jack Hole symposium has equally favored Bitcoin just like gold and Index.

Bitcoin is currently trying to break out of the 50k psychological level and needs to do so and remain above it to further sustain the Bullish sentiments.

General view on EURO/USD, GBP/USD, USD/CAD.

 

Generally speaking, the US dollar is on a short term temporary weakness following the major disruption in Economic engagements due to the plagues from the Delta Variant of the Covid 19.

All major pairs against the USD will definitely remain Bullish while dollar keeps declining. So I am basically BULLISH on the three pairs above.