Bull market charts are characterized by stubbornly high Relative Strength (RSI) and On Balance Volume (OBV) with prices remaining above rising moving averages for extended periods of time. Bull markets also tend to correct more through time, than price. 

There are a lot of bull markets out there today, global stimulus and central bank actions have created rising asset prices across global markets. However, I have selected 7 charts that I find to be the most powerful - all of these markets/asset classes share similar characteristics including:

  • Price is above rising 50/200 day moving averages
  • Daily/Weekly Relative Strength (RSI-14) is above the median line (50)
  • Price has recently made a new year-to-date high (only EUR/USD doesn't meet this criteria), and in some cases, a multi-year or all-time high
  • The 50-day moving average is above the 200-day moving average and pointing higher
  • On Balance Volume (OBV) is confirming bullish price action

Copper (Daily)

Copper is one of the biggest surprises of the last few months; rising from a brief dip below US$2.00 per pound to a recent high of $2.99 per pound. Copper is up nine consecutive weeks and the $3.00 level is a huge psychological resistance barrier which means that a shallow pullback/correction through time might be in order. 

EUR/USD (Daily)

EUR/USD (euro vs. US dollar) is one of my favorite long setups right now, both for fundamental and technical reasons. A confirmed weekly breakout above $1.1450 would target $1.18+ and probably help to juice equities and precious metals even higher. 

GDXJ (Daily)

Junior gold miners are one of the strongest bull markets in the world right now and this week's 'pause' is extremely healthy longer term. Support between $48 and $50 is extremely important in the long term picture, while OBV and RSI have confirmed the recent multi-year highs above $54. 

Gold (Daily)

My favorite bull market, gold, has spent the last several trading sessions pausing after reaching ~$1830. Similar to GDXJ this correction through time is healthy for the long term technical picture - first support layer below is $1750-$1775, meanwhile, the next resistance of note (above $1830) is the all-time high at $1923.70. 

QQQ (Daily)

Dave Portnoy's favorite index to choose from is in an undeniable raging bull market; the Nadaq-100 (QQQ) is signaling a green light and pullbacks should continue to find strong bid support. 

Silver (Daily)

Much like gold, silver broke above resistance at $19.00 earlier in the week and has spent the last few days consolidating its gains. This is an extremely strong bull market and I expect dips will be relatively shallow and short-lived. 

TSLA (Daily)

Love it or hate it, Tesla (TSLA), is one of the strongest stocks in the entire world. However, I would caution that there are mounting signs that TSLA shares may have reached an emotional climax near $1800 earlier in the week. The best that TSLA bulls can hope for is further digestion and sideways trading before the next assault on new all-time highs takes place. 

All of these charts are great examples of extremely strong trends - they also demonstrate the value of checking your opinions at the door and simply following price action. If I were to listen to any number of market commentators or FinTwitters I would have never thought of going long copper, gold, silver, or TSLA in 2020 due to any number of "fundamental" or "news related" concerns, however, price rules all and there is a lot of useless FUD being spewed out there. 

Technical analysis allows us to cut through the noise and focus on the only thing that pays, price. 


DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. This publication is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.