US Majors Setup Massive Bottom Confirmation Pattern

On Wednesday, May 2, we issued a research post supporting our position that the markets were nearing an apex breakout and that critical support and resistance levels had established within the market.  We indicated that volatility is usually quite high throughout these apex breakout moves with the potential for a “wash-out” price rotation in the works.  In other words, as these apex breakouts happen, price can sometimes, falsely, break to one side or the other and rotate very quickly to the other side – creating what we call a “wash-out” price reversal.

Closing out this week, prices broke lower on Thursday, May 3, and reversed sharply before the end of the trading session to create a “wash-out” low formation which is indicative of a price bottom.  We felt strongly that our ADL price modeling system’s analysis as well as this bottom formation are strong evidence that the US majors will enter a new upside price trend very quickly.

Last week we entered three trades to take advantage of this increased volatility, fear and large price swing in the markets with subscribers of our service. We took partial profits of 4% on one, the other is up over 7%, and the third is on the verge of a big move of 20% or more.

In this post we want to share with the markets general direction because there are some hot sectors and hot commodities that should have incredible moves over the next several weeks.

 

SP500 Channel, Washout Low & Breakout

As of Wednesday, May 2, there were two levels we were watching: support at 2623 and resistance at 2658.  The triple top formation in the ES was indicative of major resistance near 2658.  We didn’t believe this range will hold for very long as our ADL price modeling system was predicting an upside price breakout.

 

 

SP500 Pennant Formation

This ES Weekly chart clearly shows the pennant formation, lower price support channels and the two intermediate support and resistance levels drawn on the price chart, above.  Our interpretation of the current market setup is that price may continue to rotate in somewhat violent modes until the breakout is completed.  The breakout price move we are expecting could happen any minute between now and the end of next week.  We believe this is the most likely time span for price to attempt this breakout move.

On Thursday, May 3, the markets created a moderately deep “wash-out low” pattern that we called in our Daily morning video to our members.  We execute a few trades at bottom of this price rotation to take full advantage of this move.

Our previous research indicated the markets would attempt a rally within the next few weeks and we knew this price apex formation often includes volatility “wash-out” reversals near the end of the move.  Our instincts proved very successful as the markets opened and rallied on Friday with a follow-through rally.

 

 

 

NASDAQ Pennant Formation

This, the NQ Daily chart, clearly shows the bullish price breakout that happened on Friday.  This is the start of the “bottom confirmation” that we’ve been warning about for weeks.  The next upside move to this formation should push NQ prices to well above 7000 and higher.  Pay attention to how this move coincided with a Time/Price Cycle pattern indicating that we should have strong upside price movement over the next 5~10 trading days.

 

 

SP500 Pennant Formation Still Intact

This ES Daily chart shows that the S&P has not confirmed the price breach pattern just yet and will likely rally past this level early this week.  This chart also shows the critical support and resistance levels that we had been watching over the past few days and provides a clear example of what a “wash-out” low looks like.  Upside potential in the ES is clearly 7%+ over the next few weeks.

 

Our research team dedicated many hundreds of hours into digging into the underlying factors of the markets and developing advanced price modeling tools.  Our Advanced Dynamic Learning price modeling systems and Adaptive Fibonacci price modeling systems are only available to our members.

If you have been following our analysis over the past few months, you know how valuable our research and timing tools are to creating success.  We urge you to join our group of traders/members by subscribing today at www.TheTechnicalTraders.com to help support our continued efforts to create success for all our members.  We continue to be 2~3 weeks (or more) ahead of the markets while almost everyone else is 2~3 weeks behind the markets.  Which side do you want to be on?

 

CORE COMPETENCE

53 years experience in researching and trading makes analyzing the complex and ever-changing financial markets a natural process. We have a simple and highly effective way to provide our customers with the most convenient, accurate, and timely market forecasts available today. Our stock and ETF trading alerts are readily available through our exclusive membership service via email and SMS text. Our newsletter, Technical Trading Mastery book, and 3 Hour Trading Video Course are designed for both traders and investors. Also, some of our strategies have been fully automated for the ultimate trading experience.

Technical Trader Accurately Predicted Market Drop & Rally

Over the past few weeks, we’ve been telling our members and the general public that the markets have established a bottom and that prices should begin to advance near the week of May 7th and beyond.  Many people may have been skeptical of our analysis, given that so much market noise is out there and that the markets have been under pressure for many weeks.

 

FINANCIAL SECTOR ETF TRADING

This week, our members were alerted to the likelihood of an “apex volatility”, a washout low price rotation (called in our pre-market morning video on May 3. Members were alerted to get long FAS at $59.93 during the panic selloff Thursday morning and FAS has since rocketed over 7% already.

 

 

CRUDE OIL ANALYSIS POSTED YESTERDAY

Oil is particularly interesting to us because we believe the rotational top in the US Dollar will result in support solidifying in Oil near or above $66 and launch Oil into a new upside rally to well above $70.  It makes sense to us that weakness in the US Dollar with the corresponding upside pressure exerted on commodities will present an easy upside move in Oil for traders who see this move coming and are willing to take the trade.

Any Oil price move below $67 is well within our GREEN highlighted support zone and should be considered a BUY ZONE for this trade.  Remember, as this rotational top in the US Dollar plays out, there could be some volatility in both the US Dollar and Oil, so spread out your trades over a couple days to reduce risk.

 

Please visit our blog some of our recent research posts to see for yourself how we were able to “nail” this move for our members and alerted our followers to these moves in some cases nearly three weeks ago. It seems almost too amazing to consider, but our predictive price modeling systems have been nailing these market moves since the beginning of 2018.

You really owe it to yourself to visit www.TheTechnicalTraders.com to see what we have to offer.  Imagine having a dedicated team of professionals that can assist you in understanding the future market moves, providing daily pre-market video analysis and providing detailed trading triggers for you.  Add into these already fantastic features the ability to have access to our incredible predictive modeling systems that can assist members in seeing into the future and knowing what price should be doing days, weeks and even months into the future.

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US Dollar Cycle Rotation To Boost Oil

Our recent analysis of the US Dollar has presented a very unique and interesting setup for traders – an opportunity for a general commodity rally with Oil leading the way.

Taking a look at this Daily chart of the UUP (US Dollar Index Bullish Fund) with our Advanced Dynamic Learning Cycles price modeling system applied to it, we can see that the cycle analysis is predicting a rotational top in the US Dollar over the next 2~5+ trading days before a new bearish price trend pushes this US Dollar fund back to below the $24 level.  We have highlighted the Resistance Zone in red and we believe this rotating top will play out fairly quickly as an excellent opportunity for traders.

This general weakness setting up in the US Dollar should translate to strength in a number of commodities; Gold, Silver, Platinum, Oil and many others will likely see a 4~12% price increase if the US dollar contracts throughout this downward cycle rotation.

 

-SEE OUR EXCLUSIVE PLATINUM PRICE FORECAST – CLICK HERE-

 

Oil is particularly interesting to us because we believe the rotational top in the US Dollar will result in support solidifying in Oil near or above $66 and launch Oil into a new upside rally to well above $70.  It makes sense to us that weakness in the US Dollar with the corresponding upside pressure exerted on commodities will present an easy upside move in Oil for traders who see this move coming and are willing to take the trade.

Any Oil price move below $67 is well within our GREEN highlighted support zone and should be considered a BUY ZONE for this trade.  Remember, as this rotational top in the US Dollar plays out, there could be some volatility in both the US Dollar and Oil, so spread out your trades over a couple days to reduce risk.

 

The upside potential for this trade is, in our opinion, 4~7% or more.  Our modeling systems expect a 5.25% upside swing from this move currently and we believe the upside may be a little bit more than this expectation.  We believe this is a solid trade setup and weakness in the US Dollar will be key to this trade playing out as we expect.  Remember, all of this is expected to happen within the next 10 to 20 trading days, so you have time to position your trades and take advantage of this move.

You can receive our daily pre-market analysis with index, oil, and precious metals trade signals by joining our Wealth Building Newsletter.

Chris Vermeulen
email: chris@thetechnicaltraders.com
website: www.thetechnicaltraders.com

Platinum Price Cycles Predict Big Upside Move

I wanted to take a moment to alert everyone to a price cycle setup that may turn out to be one of the most dramatic price moves we’ve seen since 2008. The metals markets have recently made some news by breaking to new recent price highs. This price move prompted a number of major firms to announce new bullish directional forecasts for gold with predictions of $2500 to $3000 price levels in the near future. These future price predictions led me to consider what it would take for metals to rally more than 30% from current levels – and the answer became clear to me.

A strengthening US dollar in combination with…

READ FULL ARTICLE ON 321GOLD.COM

Preparing For The Next Move

Over the past few weeks and months, we have been writing to all our members that this next move should be massive in the US majors.  We have been very clear in our analysis and have shown the price action identified as the highest probability outcome with our Advanced Dynamic Learning (ADL) price modeling system.  Today, we are going to share more information that will help you understand what to expect over the next few days and weeks.

Today’s price action was very unique and presented a series of critical trade levels that we will continue to watch through the end of this week and into next week.  The identification of support and resistance levels near the apex of a pennant or flag formation is critical because these apex moves tend to include some wild price rotation before the new trend is established.  As of today, we have two new levels we are watching : support at 2623 and resistance at 2658.  The triple top formation in the ES today was indicative of major resistance near 2658.  We don’t believe this level will hold for very long as our ADL price modeling system is predicting a price breakout next week.

The longer term ES Weekly chart shows the pennant formation, lower price support channels and the two intermediate support and resistance levels drawn on the price chart, above.  Our interpretation of the current market setup is that price may continue to rotate in somewhat violent modes until the market completes this phase.  The breakout price move we are expecting could happen any minute between now and the end of next week.  We believe this is the most likely time span for price to attempt this breakout move.

This chart below is a Weekly YM chart with the ADL price modeling system applied to it.  This analysis is reserved for our subscribers but within a 2~3 week span, our modeling system is predicting a possible 10~14%+ price move in the DOW and US majors.  Most traders don’t have a clue what to expect, we know what should happen.

We are providing our members with more details of our ADL price modeling system showing these later weekly levels have a very high probability of success based on past price analysis.  Historical prices are showing a 90~100% probability of success for these projected price levels.  Therefore, unless the future price is vastly different from the previous 15 instances of this ADL price DNA marker, we have high confidence that price will attempt this massive move within the next 14+ days.

We are uniquely positioned right now to take advantage of this without excessive risk.  We will continue to evaluate new trades with regards to potential for success while considering risk.  Our objective is to not overweight our positions too heavily into one aspect of the market.  Although, we will add that once confirmation of this move is evident, we may find multiple opportunities for quick profitable trades for our members.  Get ready for some exciting price action and for this move that no one is expecting.

Join fellow traders from over 87 different countries and see how our technical analysis and trade setups can grow your account – www.TheTechnicalTraders.com

Chris Vermeulen

The Markets Most Impacted By A Rising USD

With the USD on an uptrend for at least the short term we need to consider what markets will be impacted the most. Sometimes the USD has a strong inverse correlation to certain commodities and other times it doesn’t seem to matter. Chris Vermeulen, from The Technical Traders website, joins me to shares his thoughts on the markets that will be impacted the most by the USD if it continues to rise.

CLICK DOWNLOAD LINK TO LISTEN ON THIS DEVICE: DOWNLOAD SHOW

Chris’ articles, Technical Trading Mastery book, and 3 Hour Trading Video Course are designed for both traders and investors to explore the tools and techniques that discretionary and algorithmic traders need to profit in today’s competitive markets. Created with the serious trader and investor in mind – whether beginner or professional – our approach will put you on the path to win. Understanding market structure, trend identification, cycle analysis, volatility, volume, when and when to trade, position management, and how to put it all together so that you have a winning edge.

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Yesterdays Trade Has Rallied $4.42 a Share – Now What?

Yesterday we shared the chart of our underlying asset for our trade setup, and below is a chart of the ETF we entered and it has jumped over 6.6% or $4.42 a share already!

YESTERDAYS TRADE SETUP CHART IN THE UNDERLYING ASSET

 

OUR TRADE ENTRY, RALLY, AND PROFIT TAKING TARGET REACHED!

We are preparing for another trade alert as another one of these setups is unfolding!

If you want to see the new trade that was issued today for TheTechnicalTraders.com members and take advantage of this opportunity, then do yourself a favor and sign up for our QUARTERLY or better yet the 2-Year membership and save huge on your long-term success! It tough to beat daily pre-market videos telling you what to expect that day, and trade alerts that actually generate profits every week!

Last Reminder

After careful consideration and respect for our members and followers, as of May 1, 2018, we have decided to make all of our more detailed and dedicated price modeling research only available to our subscribers and members while still attempting to provide more general market research to our non-member, free followers.  We are making this alteration to our posting and publications in an effort to provide more exclusive value to our members and to limit the free public exposure of our proprietary price modeling systems that have been generating incredibly accurate price triggers over the past 7+ months. Our efforts are to better support our members and to make our proprietary research exclusively available to our subscribers – the people that support our research and team of developers at Technical Traders Ltd.

 

We will continue to post research articles regarding the markets, trend and forecasts for our free followers to learn from and gain market insight.  Our proprietary market cycles, Fibonacci price modeling, Adaptive Dynamic Learning (ADL) price modeling and other proprietary research models will become exclusively published within our members area for our valued subscribers to profit from.

 

We have been contacted by a number of people recently who have expressed their admiration and astonishment of our posts, research and price modeling system’s success.  We believe we are offering the most innovative and inclusive market research that you can find anywhere.  We don’t know of anyone that has the tools we have or has the capabilities we have in regards to accurately predicting market trends, turning points and setups.  All you need to do is read our recent posts to know how incredible our calls have been in the markets for the past 7+ months.

 

We urge you to become a subscriber of www.TheTechnicalTraders.com to continue receiving our advanced research and access to our incredible price modeling systems.  If you want to know where the market is going today, tomorrow, and next month, and if you want some greater insight regarding what to expect from price, then you owe it to yourself to join today and make your trading decisions easier and more profitable. Remember, we called every major move in the markets this year and at least 3 weeks in advance – where else are you going to be able to get that type of analysis?

 

We look forward to continuing to serve all of our followers and subscribers. We will still post-free research posts to the general public.  They will simply be more general and exclude our proprietary market turning points and price forecasts. JOIN NOW!

 

Respectfully,
Chris Vermeulen & team.

Trade Setup & Last Research Posting Announcement!

Want to see the new trade that was issued today for TheTechnicalTraders.com members and take advantage of this opportunity, then do yourself a favor and sign up for our QUARTERLY membership so you can see how we help our members generate profits and stay ahead of the markets every week also!

RESEARCH POSTING ANNOUNCEMENT

After careful consideration and respect for our members and followers, as of May 1, 2018, we have decided to make all of our more detailed and dedicated price modeling research only available to our subscribers and members while still attempting to provide more general market research to our non-member, free followers. We are making this alteration to our posting and publications in an effort to provide more exclusive value to our members and to limit the free public exposure of our proprietary price modeling systems that have been generating incredibly accurate price triggers over the past 7+ months. Our efforts are to better support our members and to make our proprietary research exclusively available to our subscribers – the people that support our research and team of developers at Technical Traders Ltd.

We will continue to post research articles regarding the markets, trend and forecasts for our free followers to learn from and gain market insight. Our proprietary market cycles, Fibonacci price modeling, Adaptive Dynamic Learning (ADL) price modeling and other proprietary research models will become exclusively published within our members area for our valued subscribers to profit from.

We have been contacted by a number of people recently who have expressed their admiration and astonishment of our posts, research and price modeling system’s success. We believe we are offering the most innovative and inclusive market research that you can find anywhere. We don’t know of anyone that has the tools we have or has the capabilities we have in regards to accurately predicting market trends, turning points and setups. All you need to do is read our recent posts to know how incredible our calls have been in the markets for the past 7+ months.

We urge you to become a subscriber of www.TheTechnicalTraders.com to continue receiving our advanced research and access to our incredible price modeling systems. If you want to know where the market is going today, tomorrow, and next month, and if you want some greater insight regarding what to expect from price, then you owe it to yourself to join today and make your trading decisions easier and more profitable. Remember, we called every major move in the markets this year and at least 3 weeks in advance – where else are you going to be able to get that type of analysis?

We look forward to continuing to serve all of our followers and subscribers. We will still post-free research posts to the general public. They will simply be more general and exclude our proprietary market turning points and price forecasts. JOIN NOW!

Respectfully,
Chris Vermeulen & team

US Dow & Majors Setting Up For A Massive Move

Here at Technical Traders Ltd., our inbox has been full of questions from followers regarding the recent market rotation and concerns about another downside move. We understand trading is an emotional process and that fear and anxiety often play a very big role in decision making – we get it.  So, before the markets open for trading this week, we wanted to share some exciting news and we hope this helps to settle some emotions.

As you are probably well aware of by now, our Adaptive Dynamic Learning (ADL) price modeling systems has been nailing the markets for the past 7+ months for both intermediate and intraday highs and lows.  One of the most powerful components of this predictive modeling system is watching for price correlation to modeled behavior and watching for what we call “price anomalies”.  We have mentioned this before in previous research articles.

Before we continue, its important to mention that we will no longer be posting these (ADL) forecasts and trade setups publically. This analysis is reserved for our subscribers and for our own trading to take full advantage of the markets.

 

Price anomalies occur when the current market price is under some level of pressure (upward or downward) that pushes price away from the predicted levels.  This happens with global news events, earnings events and other market psychology events.  Our opinion is that price reacts to these external events over a relatively short period of time, then, as the events settle, price reacts to the traditional behavioral models predicted by the ADL modeling system and attempts to recover to near these predicted levels.  Let’s take a look at a recent example of these ADL price anomalies and how the work.

In this example below, we see two recent weekly ADL price anomalies and how the market price reacted to “revert” back to the ADL predicted price levels.  We believe these types of events are price level exceptions that occur with some regularity in the markets and can be traded to our advantage for some incredible gains.  Pay attention to the DASHED baby blue lines from the ADL modeling system that shows the predicted price levels.

 

Now, lets take a look at a current Weekly YM chart to see how the current price anomaly is setting up.  Almost similar to the first price anomaly in the upper example, yet in the opposite direction, the current price anomaly is indicating an incredible 10~14%+ upside price potential within the next 2 to 5 weeks.  We believe this upside potential is being ignored by much of the market because of the recent downside price pressures that have kept a lid on the upside breakout.  We do believe that once that downward sloping YELLOW price channel line is breached, the upside price move will begin and likely be a VERY FAST move up.

 

Lastly, you might be asking yourself how we reconcile various ADL predictive price levels that could present various or conflicting predictive pricing?  First, please understand that the ADL price modeling system is just one of the tools that we use in our analysis.  Secondly, the data you are not seeing which is only shown to the researchers and analysts is the “predictive probability” of each predicted price level.

We know which levels have a higher degree of probability than others – thus we can use this knowledge to determine which outcome is more likely.  Also, more recent analysis from the ADL pricing model with high degrees of price correlation and probability are, in our opinion, more relevant to the future price levels than older price analysis.  With our ADL predictive modeling system, we can see many days, weeks or months into the future – the trick is to understand how to use it properly.

In closing, with all the fear and emotions running at high levels, we wanted to settle our readers minds a bit with this analysis and these charts.  If you take a look at the predictive price level for this next week, the YM should attempt to move back to near 25,540.  The following week, the YM should be attempting a more aggressive upside move to near 27,500 or higher.  We are just waiting to see that YELLOW price channel line be broken before this price move initiates.

If you want to learn more about our analysis or maybe you just want winning trade alerts, take a look at our Wealth Building Newsletter service and see how we can assist you in finding and executing great trades every month.  We have members from 87 countries that following our daily technical analysis video and trade alerts each week.  Visit www.TheTechnicalTraders.com

Precious Metals and Mining Stock Chart Paint A Clear Picture

In this article, we are going to explain and show you an interesting pattern that has been slowly forming over the past year in the precious metals sector. This pattern along with our analysis point to a significant rally to start in the next 4 months for gold, silver, platinum, palladium, and miners.

Before we get into the details, below, it is important for every trader to step back and look at the bigger picture. It’s way too easy to get sucked into the markets movements, become an emotional trader, start losing a few trades, and second-guessing your open positions.

We receive hundreds of emails every week from followers, and to be honest, this is one of the most powerful indicators available for letting us know when the majority of people are frustrated and have become emotional traders. Based on recent emails, their tone of the message, and market outlooks we can tell everyone is emotional and not seeing the market from a normal unemotional perspective.

There is no doubt it is easy to get caught-up in the market and become an emotional trader if you don’t have a proven trading strategy for each type of market condition, advanced trading analysis, or trading guidance from a proven trading newsletter.

These past 30 trading days have been really tough to trade because the market is chopping around with huge one day moves back to back. Sometimes, its best to sit, watch and wait for some dust to settle before getting overly involved with new trades which is what we have done. Recently we traded YANG for a quick 8% profit, then we closed out two trades in TNA to profit 10.1%, then another 17.7% this month. Other than that, that’s about it. Now, with that said, things are about to get really exciting for us traders and we are getting ready for some new trades, both short-term and longer-term, looking forward many weeks and where the market should be headed.

Enough about all that emotional stuff, let’s jump right into the charts so you can see what we are excited about in this post!

 

Weekly Custom Precious Metals Weekly Chart

The chart below shows several interesting data points and it’s fairly easy to see and understand.

Starting at the bottom of the chart you will see the purple line which is the Relative Strength Index (RSI). If we look back 4 years you can see a similar pattern unfolding which leads to a massive rally for precious metals back in 2016.

Knowing human behavior patterns don’t change, but rather repeat, it is likely we see another upside breakout and rally later this year. That does not mean, the price will go straight up, it simply means on average over time we should expect higher prices.

Before any new rally can take place, the precious metals sector must breakout above the pink falling trend line, just as it did in 2016.

If you didn’t notice already, we have posted our weekly cycle analysis for the precious metals complex. Over the next 6 – 8 weeks the sector should start to rally and try to break out. Again, this does not mean everything in the precious metals sector will rise. In fact, there are a couple areas you will want to stay away from. We share the best trade setups and alerts with our subscribers as they occur.

 

Weekly US Dollar and Precious Metals Comparison Chart

Here we show you on the chart the basic concept of how a falling dollar will push the price of gold higher, and how a rising dollar pulls metals lower on average. But this is not always the case. In fact, recent price action shows the dollar moving sharply higher while the precious metals sector moved sideways and higher. This looks like bullish divergence from their normal correlation and is likely caused by different global market dynamics injecting some new level of a fear that is funneling money into gold as a global safe haven.

 

Concluding Thoughts:

In short, we at www.TheTechnicalTraders.com have been talking about the new bull market slowly setting up for precious metals since late 2017. As an investor and trader its always nice to be able to look forward knowing with a high probability what asset classes should be moving in and out of favor so we can position our capital accordingly.

If our analysis is correct once again, then over the next couple months this sector should be testing critical resistance to breakout and rally above the pink trend line. If you want to stay ahead of the markets and profit from our technical analysis then join the Wealth Building Newsletter now and get ready for this week!

53 years experience in researching and trading makes analyzing the complex and ever-changing financial markets a natural process. We have a simple and highly effective way to provide our customers with the most convenient, accurate, and timely market forecasts available today. Our stock and ETF trading alerts are readily available through our exclusive membership service via email and SMS text. Our newsletter, Technical Trading Mastery book, and 3 Hour Trading Video Course are designed for both traders and investors. Also, some of our strategies have been fully automated for the ultimate trading experience.

Chris Vermeulen.