Two Bearish Favorites and Two New Bullish Calls

Mark Shawzin
October 13, 2021

In this report, I'm going to identify three trades I think are going to move significantly both in the short term and probably well beyond that.

Let’s look at XAUUSD (spot gold) first:

Since topping out at $2,100 months ago, gold has steadily lost its luster. Despite oil prices rocketing from literally zero last May to over $80 currently, and the Fed balance sheet expanding steadily all the while, gold has sold off 20% when measured to its lowest retracement point. It’s now around $1,750 currently.

More importantly, gold looks poised to go much lower based on what the charts and the price history tell us.

That’s because I’ve been looking at gold within the confines of a very large, ascending broadening price pattern. This pattern starts out life narrow, broadens at the top, and is inherently bearish.

Gold has seen a couple of recent attempts at support lows, but if this really was a bottom, we should have seen a gold take off. Instead, XAUUSD hit resistance around $1,850 and has been losing altitude since.

Last week there was even a bearish key reversal. Gold made a new high earlier in the week but then closed on the low at the end of the week.

So gold is once again poised to retest the lower end of the ascending broadening price pattern.

To my mind, it's not a question of if but when gold gets there around the $1,710 - $1,720 level. At that point, gold will either bounce after grabbing a foothold for a sustainable rally, or else fall through.

If the latter, this could open up a huge move lower. That’s because ascending broadening price patterns often measure how far price is likely to go after a breakdown: the base of the pattern.

If gold breaks the lower support level, history tells us prices could plummet all the way back to the $1,200 level. Even though that seems extraordinary right now, this is what the examination of price history tells us.

I think it's entirely possible we could see a move of this magnitude in gold in the weeks and months going forward.

Meanwhile another market has fired what looks like the opening salvo on what could be a huge move going forward. That market is USDJPY (the US dollar versus the Japanese yen):

I've been observing USDJPY within the confines of a descending triangle price pattern for many years now. And recently, the pair has been hovering at a key resistance level.

To my mind, it was an open question which way USDJPY was going to break from this. Would it be to the upside or would the price instead retrench back into the triangle?

To find out more watch my full video report, this video report is time sensitive. The markets will move and the opportunities revealed in this video report will evaporate, if you delay.

This week I’m specifically looking at:

  • What just happened in gold and why you should be short the yellow metal now
  • The key level that gold has to hold...but probably won't
  • I've just reversed by long-standing bearish call on this year pair -- at last! (starts at 3:34)
  • The verdict is in -- why this yen pair is a long-term buy now (starts at 3:34)
  • Why this Chinese e-commerce stock looks strongly bullish despite all the media bearishness (begins at 6:45)
  • It's not to late to get short BYND -don't miss the crash that's just getting started 

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