Recent geopolitical events are making certain charts in crypto and precious metals more important.

News headlines of an apparent torpedo attack on oil tankers could inflame the situation with Iran. The Chinese banking system and U.S. trade ports are suffering from the trade war, potentially worsening U.S. relations with China. And then of course there’s Brexit.

For us, the net-net of the geopolitical developments is that capital flight out of multiple regions of the world may become an even bigger issue than it already is.

We see this benefiting four instruments with positive chart setups based on the bullish chart pattern from Jesse Livermore’s analysis (Figure 1).

Figure 1

Privacy coin Monero (XMR), has a very positive Livermore setup (Figure 2). The recent basing process in Monero sets up potential for a sharp up move.

Figure 2

Bitcoin Cash (BCH) also has an improved technical setup. Bitcoin Cash (BCH) may be relevant if the Chinese government does anything to disrupt Bitcoin (BTC) mining operations in China. Yes, it’s a stretch, but there has to be a reason why Bitcoin Cash (BCH) has been able to hover near $400 (Figure 3).

Figure 3

Gold is a much more obvious upside play. Livermore structure is there on the Gold weekly chart. That could trigger a move to $1,500 (Figure 4).

 Figure 4

Bottom Line: The more frightening the world becomes, the more it benefits crypto. Chart structures continue to favor the upside sooner rather than later.

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