The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (
) -- 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
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…).
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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:
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This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.
Chris Vermeulen is founder of the popular trading sites www.thegoldandoilguy.com and www.ActiveTradingPartners.com. There he shares his highly successful, low-risk trading method. Since 2001, Chris has been a leader in teaching others to skillfully trade in gold, silver, oil and stocks in both bull and bear markets.