XAUUSD
XAGUSD

July ended with a divergence between Gold and Silver. In other words, Gold did not take out June’s lower liquidity, but Silver did.

As we mentioned in previous analyses, this detail could be the early signal of a market bottom — something extremely important for long‑term investors to keep in mind.

Now… for medium‑ and short‑term traders, we cannot completely rule out another drop to the lows, mainly in Gold, to sweep June and July’s lower liquidity.

If we see such a drop during the first 10 days of August, then it is very possible that we are witnessing the definitive bottom, which could end with a large lower wick on the weekly or monthly chart.

…And in the case of Silver, it should not revisit July’s low, but if it does, you need to have two bullets ready:

• the first to buy below July’s low

• the second to buy on the retest of the former ATH from the two previous cycles.

In any case, regardless of volatility, news, rumors, or even the world falling apart… seeing Gold and Silver below July’s low in August is a signal to look for buy confirmations.

But we must also be prepared for the scenario where the divergence does its job and ends up confirming the market bottom. Because if this happens, then the only thing price will do from now on is go up.

In that case, pay close attention to today’s weekly open at Sunday 18:00h NY and to the Asia session, because they could set the lowest prices of the entire week.

This scenario is closely tied to the trades we executed in the week that just ended. So it will only be necessary to look for buys below the previous weekly low (PWL), aiming for the main target at the weekly high (PWH) and monthly high (PMH).

In no case will I be looking for shorts. Extreme caution is needed with short positions from now on.

But if a short‑term selling opportunity does appear, the most appropriate level would be the monthly high (PMH).

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Remember to follow me on Twitter and Telegram, because that’s where I can post updates, track the market, and trade together with the community.

Telegram: @luisstout  

X (Twitter): https://x.com/LaRutadeSTOUT

During the weekend we were looking for buy positions in Solana, and it seems that throughout the week we’ll be quite busy with this operation.

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