Gold & Silver Have The Perfect Setup - What Comes Next!

Hey, folks, welcome to verified investing dot com. My name is Gareth Soloway, chief market strategist here. Now, in today's video, we're going to cover gold and silver, but more importantly, oil and natural gas. And I'm going to reveal where I am putting my money. It's not right now in gold. We talked about a pullback on gold that was likely coming last week. It did arrive on Friday and has continued today. It's not silver either. And believe it or not, it's not oil that leaves natural gas. I'm going to cover that sharp because I think natural gas is breaking out here and likely to have a big move up. In addition, I'm going to reveal a couple opportunities in stocks that are related to commodities that look like they are going to see significant downside over the coming weeks and months. I'll show you guys that in just a second. Before we get there, don't forget, guys, you can join Gareth's top squad right here. This is my YouTube, my YouTube premium, $9.99 to join exclusive videos, a new discount every single week on something on Verified Investing. And now I'm starting to do live broadcasts. So live broadcasts, usually about one a week where I will take questions, Q&A, talk about the charts, my latest forecast, all of that just for 10 bucks a month. Sign up again, guys. It is a no brainer. All right. So let's get into the charts. We're going to start with oil here. Take a look at oil crude oil today, spiking up in the overnight on the back of renewed military hostilities between the U.S. and Iran. But has anything really changed? And the answer is, per the charts, nothing. Why do I say that? Nothing. Well, because the chart tells us. Right. So while emotion tends to make people say, oh, here we go, or something bigger is happening, the charts are always the smartest thing in the room. Smarter than me, smarter than you, smarter than all of us. And that's what we go by, because that gives us the probability of success versus just kind of going with emotion, which at least for me, and I can only speak for myself. Any time I've made the emotional decision with the trade, it's usually gone against me. All right. So let's jump into the chart here. What do I mean by this? Well, clearly you can see we have high pivot, high pivot, high pivot all the way down. What did we do today? Today we pierced it. I mean, look, you actually went above it. But look at how price is now getting pushed back down below that. And what's really going on here is, again, the wedge pattern is working its magic. So there you have it. As long as we do not close and confirm above this line, then what do we think? Well, basically, the chart tells us that we are stuck within the wedge pattern, which means we could come down, we go up something like this. Maybe eventually we break out or break down, but we don't know that yet. And again, you know, basically one of the biggest issues for most investors, inclusive of myself, especially early on in my career, is jumping the gun, right? It's seeing something and wanting it to be true. So we like, oh, well, this is going to make a move right before it actually tells you that in the chart. And so I always caution people, always look at yourself. Are you coming at the chart or at the trade from a position of wants, hopes and dreams or fear, or are you coming at it from a logic based assessment? And that's going to help you improve dramatically. So again, we're seeing what oil is doing here. But as of now, it doesn't look like it'll close outside of the wedge pattern. And that's something I'm going to keep an eye on. If we do close above and confirm, OK, new ballgame, then the chart has told us something new. But until then, what? Well, the same thing that we knew over here, this is resistance and this is support. Would I buy down here? I might do it for a little trade. Would I short here? I don't have the guts to do that because, again, I think risk reward just isn't in there. And obviously, we just want to be a little careful. But either way, it's certainly not getting me to jump the gun and go long on the trade. All right. Next up, let's take a look at gold and silver here, folks. Gold again. Here's the chart. All right. So we knew that the breakout occurred. We talked about this. OK, game on. It broke out. What a move up. And I said, when it pulls back, where did I say it would go? Where was first the first spot where the bulls would have a chance to defend the pullback? And that was very simple. Right. You just look at the chart. You can see you had one move up and then a bunch of consolidation move or sideways chop and then the second move up. So it makes sense that this is where a lot of the volume buyers and sellers are. So this is now going to get defended right in here. And so what we can do is we can put this little bit of a zone right through here. This now becomes technical support. Now, could gold shoot right up? Yeah, absolutely. It could. But it also could break through. And again, we're still somewhat short term extended. But in terms of the bulls and bears, this is the first major technical support that the bulls will try to defend against. I'll be monitoring it very closely because how this plays out is going to determine if gold falls all the way down to the next big support at around forty one sixty five right in here, possibly even retracing back to thirty nine hundred. Or can it shoot back up and retest this trend line, which will now go even higher right now? We're talking about, you know, if it just to test it in late September, we're already at forty eight hundred on spot gold. Now let's flip over to silver and see what the latest on silver is. Silver working its magic here. You can see, again, you have your zone of resistance, this low pivot right through kind of kissed right there, then broke, retraced, established this as the zone of support slash resistance and price eventually breaks out of this descending trend line. Very simple breaks out, consolidates, pushes up it. Look at how on Friday it tried to push up. And this was just too much overhead pressure on price. It rejected it. Then a big fall ensued. And basically today it is flat. But look at where it is. Right. I mean, again, we're right in this zone of support. So again, all of this sideways, just like with gold, this now becomes technical support. Now, if we break below sixty four fifty or so, then you probably honestly fall all the way back here to about sixty two. If that breaks, we could head back down towards the trend line that is descending, which actually could potentially mean we could go lower now on the vice versa side. Simply put, we're just watching to see can price break through here? What we would want to see is a bull. You want to see price staying. So it kind of went here, then down. We just want to see this. If we can see this right. That's bullish. A bull flag. Right. And so, again, understand your your move. Here's your here's your flagpole. Here's your flag waving in the in the breeze. You want to see this type of pattern and then eventually a break to the upside. If we got this type of pattern, I would consider going long on silver as a swing trade. But it needs to mature right now. You're just getting the first pullback. We want to see that kind of. Oops. And I just moved that. But that's OK. Bring it right back up there. We just basically want to see this sideways chop inside of this range and holding above this sixty four fifty level again, sixty four sixty five fifty right in this vicinity. If it does that, like I said, the the probability starts to favor the upside. Now let's go to natural gas and G1 here on the charts. Let's bring up this chart here. Here it is. Natural gas. Now, what has me so bullish on the charts of nat gas? All right. To the point where this is now my favorite commodity to invest in. Now, I'm going to show you some commodity related stocks just next that I believe are going to go down and have a big fall and I'll explain why. But on natural gas, I think the signs of a breakout. It's now in that process. Let's take a look. So, number one, what we're going to do is we're going to take this high pivot. Now, you had this really wacky move in January of twenty twenty six. If you remember, there was some news driven and look at how fast it collapsed right back down. So this is what I would call an outlier. Right. Very wacky type move. But what we want to do is we want to take that former high, which was a legit high. Notice how we ground higher ground down. It was it was sharp, but it was very much controlled versus this was just ridiculous. You know, three, four bars up and then a massive gap down right there. So what we're going to do is we're going to take a trend line from that high and we're going to connect it right through this high, which saw price rejected it right here. So price rejected. So now extend that out and look at what's happened. We've now broken out above this point of contention. We've now we are now in breakout mode. In addition, for those of you that have been following what I've been talking about in the game plan, which is Monday through Friday, my live show on the Verified Investing YouTube, you can see that we were kind of hovering right in this vicinity. Right. So you had this zone. In fact, I want to use one of those pair of rectangle boxes again because I love them. They just kind of show so much of what we're looking at. So you can see right here. So support, support, did it break down resistance, resistance, resistance and break. Notice how the breakout of the descending orange trend line coexists with a break above the horizontal zone here. And look at how price two days in a row Friday and today has tested this area and defended it. Now, there is a little bit of resistance that it needs to really break above. See the sideways consolidation in this zone. We've got to get through this level to ninety five. But if we get through here, we should see significant upside. And if you look at this chart, I mean, again, which commodity hasn't had a massive run over the last six months? And the answer is natural gas. In addition, we're coming into the seasonality aspect. Remember, the winter is when most people are going to use the demand for natural gas goes up. In addition, a couple other intriguing fundamental aspects are that we're now seeing Europe at a major deficit for natural gas. So they're going to be a buyer, a net major buyer of natural gas on the open market. And then also, more and more, we're seeing restrictions on rates rising from utilities due to the data center build out. And so more and more pressure is being put on data centers to go to an alternate source that they have to purchase themselves. And the chances are, in terms of cheapness, is that natural gas is going to be that main culprit. All right. Lastly, I want to just talk about a couple charts here that are catching my eye. This is Valero. Now, Valero is a refiner. This chart looks to me like an AI stock because it's so vertical. The reason why the refiners have done so well versus a Chevron, look at Chevron just sideways. I mean, yeah, it's closer to the highs. But, you know, here's your high here in March of twenty twenty six. We haven't even taken that out yet. But if you look at Valero, look at Valero up into the right pretty vertically. Now, the key here is understanding the crack spread. The crack spread is basically the margin, the profit from what Valero when they buy the oil and then refine it and then sell it. That's the crack spread, what they're getting in profit from that or the difference in price. And that's gone up to ridiculous levels. That inevitably comes in. It comes in every every scenario it comes in, especially as the president is now putting more and more pressure on getting the refiners to produce more. That crack spread will come in with that. These stocks are so overbought with negative divergences. And you can see on Valero, we have this beautiful up ascending trend line that's now gotten rejected. Look at how it gapped up today, touched it and is already starting to reverse Valero PSX. The refiners that have gone and I'll show you the PSX chart here, which is Phillips 66. Same sort of chart. I mean, look at the vertical move up. But this is very telling what we're starting to see here. Here you had a bullish consolidation, potentially a flight, a failed breakout. So again, folks, gold into support. We'll have to see how it behaves here. Silver into support. Same thing. Nat gas looks like it's breaking out. Oil is still stuck in its wedge. And again, refiners look like the top trading short, along with a long, unnatural gas. You guys have a great rest of your day. Thanks so much for tuning in. Appreciate the kind words, the comments, the likes, the shares, everything, guys. You guys are rock stars. Thank you so much. Talk to you soon. Take care.