Quarterly Commodities Outlook is available for free now. Download your report →
By: James Stanley, Sr. Strategist
Gold’s powerful rally above 4,200 has reignited debate about whether chart-based trading still holds relevance. It can be argued that technical analysis was never intended to be a tool for prediction, but rather a framework for interpreting behavior and managing risk. Trend recognition and support-resistance structure remain the foundation of disciplined trading, and these ideas matter even in fast-moving global markets.
James Stanley, Senior Strategist at FOREX.com, discusses the principles behind technical analysis and how they continue to guide trader behavior.
Stanley emphasizes that analysis itself “doesn’t have a job—the trader has a job.” He views charts as a lens for structuring trades, not a predictive engine. “About the best that I can do is look for areas where I could try to risk a dollar in effort of making two.” By defining risk before entry, traders replace emotion with structure, transforming technical analysis from guesswork into a disciplined process for consistency over time.
Using gold’s run beyond 4,200 as an example, Stanley illustrates how higher highs and higher lows confirm continuation rather than signal exhaustion. “Trends exist, and there’s often a reason for it.” He argues that waiting for pullbacks within those structures allows traders to enter with defined risk, avoiding the temptation to chase momentum. “A missed opportunity is much more palatable than losing capital.” For him, patience and psychology are as integral to technical analysis as the charts themselves.
What are the major events and indicators on tap for the global economy that could charge volatility in markets and reshape deeper fundamental themes? Sign up for the updated Global Macro Calendar updated each week with a two week look ahead of the top events!
Sign Up See our financial videos hub
--- Written by Gus Farrow, Head of StoneX TV
--- Expert: James Stanley, FOREX.com Senior Strategist
The subsidiaries of StoneX Group Inc. provide financial products and services, including, but not limited to, physical commodities, securities, clearing, global payments, risk management, asset management, foreign exchange, and exchange-traded and over-the-counter derivatives. These financial products and services are offered in accordance with the applicable laws in the jurisdictions in which they are provided and are subject to specific terms, conditions, and restrictions contained in the terms of business applicable to each such offering. Not all products and services are available in all countries. The products and services offered by the StoneX Group of companies involve risk of loss and may not be suitable for all investors. Full Disclaimer. This content is not intended for residents of any particular country, and the information herein is not advice nor a recommendation to trade nor does it constitute an offer or solicitation to buy or sell any financial product or service, by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Please refer to the Regulatory Disclosure section for entity-specific disclosures. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc. The information herein is provided for informational purposes only. This information is provided on an ‘as-is’ basis and may contain statements and opinions of the StoneX Group of companies as well as excerpts and/or information from public sources and third parties and no warranty, whether express or implied, is given as to its completeness or accuracy. Each company within the StoneX Group of companies (on its own behalf and on behalf of its directors, employees and agents) disclaims any and all liability as well as any third-party claim that may arise from the accuracy and/or completeness of the information detailed herein, as well as the use of or reliance on this information by the recipient, any member of its group or any third party.
© 2026 StoneX Group Inc. all rights reserved.
Our subscribers have access to comprehensive market analysis from StoneX spanning commodities, equities, currencies and more.
Silver behaves as gold's high-beta shadow, running far more volatile than the metal it shadows and overshooting in both directions. Understanding that relationship, and what the gold silver ratio signals, matters more than watching silver on its own.
Gold's stalled sell-off has less to do with the chart than with a Federal Reserve now led by Kevin Warsh and pulled toward politics. The rate path that gold trades against is being shaped by pressure on Federal Reserve independence, and that backdrop matters more than any single support level.
US PPI headline likely misleading
Our market expertise, advanced platforms, global reach, culture of full transparency and commitment to our clients’ success all set us apart in the financial marketplace.
Reach
With access to 40+ derivatives exchanges, 180+ foreign exchange markets, nearly every global securities marketplace and numerous bi-lateral liquidity venues, StoneX’s digital network and deep relationships can take clients anywhere they want to go.
Transparency
As a publicly traded company meeting the highest standards of regulatory compliance in the markets we serve; our financials and record of accomplishment are matters of public record. StoneX’s commitment to “doing the right thing over the easy thing” sets us apart in the industry and helps us build respect, client trust and new partnerships.
Expertise
From our proprietary Market Intelligence platform, to “boots on the ground” expertise from award-winning traders and professionals, we connect our clients directly to actionable insights they can use to make more informed decisions and achieve their goals in the global markets.
