Precious Metals Setup Final Buying Opportunity

Our research team, at Technical Traders Ltd., has been all over the precious metals markets for the past 16+ months.  We’ve been so deep into research and study with regards to price action and technical/fundamental data, that we’ve been able to call market moves many months in advance.

Recently, over the past few months, we’ve been warning that an April 21~24 date is likely to set up an ultimate price bottom in the precious metals market. It could prompt a broader upside price swing that should eventually lead to a much bigger upside breakout move.  On March 8, 2019, we posted this article that clearly outlined our thinking at that time saying a bounce to $1315-1320 before heading down to $1255.

Take a minute to read that article and consider this current downside price action as a gift the precious metals markets are allowing for all of us.  This is the move that we’ve been warning about for months – the retracement from the $1315~1320 level that should bottom out near $1240~1265 and will ultimately become the “momentum base” for the future upside move.  Precious metals are starting a move that we predicted many months ago.  Our researchers believe Gold will trade below $1275 for a brief period of time (likely just a few days or weeks) before setting up a broad-based momentum bottom.  Our objective is to “leg into” this setup with a series of long trades for the ultimate upside breakout.

Our research suggests that near the end of April 2019 or in early May 2019, Gold prices will likely begin a strong upside price move that will quickly target the $1500+ price level.  We believe this current price swing will set up as the last real opportunity for skilled traders to accumulate long positions in precious metals while we wait for the April/May breakout move.  Any opportunity to buy near the lower range of our Buy Zones would be an excellent entry position given our future prediction that a massive upside breakout move is just 20~30 days away from starting.

This Daily Gold chart shows just how deep the Buy Zone is for Gold.  Any price activity below $1275 would be a solid entry for skilled traders.  Any further opportunity to add to that position below $1265 is even better.  Ultimately, we believe the $1240 to $1250 level will hold as support for the momentum bottom.

 

This Weekly Gold chart highlights our Buy Zone in broader price perspective.  As you can see, the $1250 level corresponds to a price peak back in October/November 2018.  We believe this level will act as long-term support and that price will bottom between $1240 and $1265 before the upside price swing begins.

This last Weekly Silver chart highlights the fairly narrow Buy Zone in silver that will allow traders to accumulate long position near of just above $16.50.  We believe this $16.50 level will become key support throughout this April 2019 lower price rotation.  Remember, near the end of April or in early May, we strongly believe a new upside price move will take place that will blow through recent highs and prompt a 12 to 25% upside price move.  Our target for Gold is above $1500 (likely $1575 to $1675).  Our upside target for Silver is $17.50 to $19.50 with this first upside leg.  Our opinion is that this initial upside leg could be the start of a much larger and much more profitable price advance – lasting many months.

If you want to join a group of professional traders, researchers, and friends, take a look at our trading newsletter to learn how we can help you find and execute better trades each month.  In fact, we are about to launch our newest technology solution to better assist our members in creating future success with our complete Wealth Building Traders Newsletter with Long-Term investing signals, Position trades, Swing trades, and our pre-market gap fill and spike day trades.

Chris Vermeulen

Natural Gas Sets Up Another Buy Opportunity

Recently, we warned that Natural Gas may set up another opportunity for traders to buy into a support zone below $2.70 with a selling range near or above $3.00.  Our upside target zone is between $3.25 and $3.45.  The price of Natural Gas has recently fallen below $2.69 and we believe this could be the start of a setup for skilled traders to identify key buying opportunity in preparation for a quick +8% to +15% upside swing.

Historically, March and April have been pretty solid months for Natural Gas.  Let’s go over the historical data using three different seasonality charts which all point to higher prices.

 

Taking a look at the data, above for both March and April it appears we should have a positive price outcome over the next 20+ trading sessions. Thus, we can determine that the likelihood of a positive price swing between now and the end of April is highly likely.

When we take a look at the chart data to see how our BUY and SELL zones are setting up, it becomes clear that any opportunity to BUY into the lower support channel, with a moderate degree of risk, could result in a very nice profit potential of between $0.35 to $0.70 on data that supports the Bullish potential as a 200%~220% advantage over downside potential.

Take a look at the data that we are presenting and try to understand that these types of historical price triggers are not foolproof, yet they do provide a clear advantage.  They allow us to see if and when there is any type of advantage to our decision making and if we can identify any real opportunity for future success.  We believe any further downside price activity in Natural Gas will result in additional opportunities for Long trades with $2.45 being our absolute low entry target.  Our upside exit target would be any level above $2.95, or higher, and our ultimate target objective would be $3.15 or higher. Our last trade in natural gas (UGAZ) gave us 30% return in just two weeks in February!

This could be another opportunity for a trader to target a quick 8% to 15% swing trade in Natural Gas over the next 20+ days.  Time to put Natural Gas on your radar again!

Are you ready for this next move?  Want to know how we can help you find and execute better trades?  Visit www.TheTechnicalTraders.com to get our, technical indicators, market analysis, daily videos and trade alerts.

Chris Vermeulen
Technical Traders Ltd.

Are Investors Blind To The Equities Upside Super Cycle?

Our research team believes the upside pricing potential of the US market could be under-estimated by global traders and investors.  We’ve been pouring over the charts and data trying to substantiate our hypothesis with our proprietary price modeling systems and technical analysis systems for the past few days.  Our results suggest the US stock market, in comparison to the global markets, could still be under-priced at current levels based on investor sentiment and this could be just the beginning of a super cycle rally we have seen happen one before.

Last year during the price rotation in February 2018, we hypothesized the current rotation was not the end of a 5-Wave Elliot Wave formation.  We believe the January 2018 highs are potentially the end of Wave 3 which is part of a much larger Wave A upside price swing.  Our research suggested that the retracements in 2010 and 2011 were not sufficient to qualify as any type of traditional Elliot Wave structure, thus the retracement in 2015 qualified as a Wave B formation.  This presented an upside Wave A size of +366%, or +$89.66, on the QQQ chart.  The Wave C move, from the lows of 2015 to the highs of 2018, presented an upside Wave C size of +121%, or +$102.77.  Given these Wave A and C sizes, we believe the upside potential of a final Wave E (the last wave higher) in the US stock market could be at least 100% to 161% the size of the last Wave C formation.

This presents a very interesting possibility that our most recent article about the Treasury Yield Inversion and the concerns about a pending recession may be setting the wrong tone for traders.  Yes, the 2020 Presidential election cycles typically result in some price rotation and sideways trading for US stocks.  This may hold true over the next 16+ months before the elections and there may not be much we can do about it other than trade these price rotations.  After the elections, though, we believe the upside price potential for the US stock market could be incredibly under-estimated.  How under-estimated, you ask?  The upside potential could be as large as +20% to 25% or more.

The red box on this Weekly NQ (NASDAQ) chart highlights the Fibonacci and Elliot Wave target levels when we presume a 100% upside price leg.  Please remember the upside leg could be as large as 161%, 200% or more on this final Wave E (or Wave 5).  The projected upside target levels on the NQ are near 9250 (or higher).

The same types of price projection points (or targets) using the Fibonacci and Elliot Wave theories predict a similar upside target level on this Weekly YM (DOW JONES) chart.  Current price rotation suggests an upside target near $31,000 for the YM (or higher) before this upside move completes.

 

Remember, the US Presidential election cycles typically mute price rotation a bit and present a bit of sideways trading.  We’ve highlighted our expectations on the following Custom Market Cap Chart we follow that helps us determine where price levels are in relation to historical norms.  You can see from this chart that we are currently sitting right at the historical middle pricing level going back almost 8 years.  We would expect a moderate upside pricing bias to continue as we head into the US election cycle with mild price rotation.  After the election cycle is complete, which is highlighted on this chart, we assume market price capitalization would be below historically normal levels and poised for an upside move (assuming a new US President is not elected with plans/policies to disrupt current GDP and economic growth factors).

Typically, Wave E (or Wave 5) formations can be relatively short in structure, or at least as long as Wave A or Wave C.  It is most common for Wave E formations to at least be as long as Wave C and in many cases, Wave E can extend well beyond Wave C length.

Custom Index – Custom Index chart by TradingView

We believe the next 16+ months will test the abilities and skills of truly skilled traders.  We believe price rotation and sector rotation will be key to finding and executing proper trades.  All the while, remember that a biased upside price trend will likely continue.  As we get into the final 4~5 month’s price to the US elections, be prepared to identify and set up some exceptional trading opportunities.  If our research is correct, this last move higher will begin somewhere near January 2021 and the upside move could last until our cycle peak date of 2027 which may sound crazy, but I will share you with a super cycle higher that could happen, and we have seen this before. Stay tuned for the Part II of this Special Report

Find out how our research and trading team can assist you in finding and executing better trades throughout all of these moves.  We are about to launch our newest technology solution for our members at www.TheTechnicalTraders.com and we believe we provide some of the best research, daily video analysis and trading triggers you can find anywhere on the planet.  We like to keep things simple and manageable for our members.  We issue 2~3 trades a week (max) and we target 5~25% swings in ETF and stocks.  We also provide incredible insight into the markets which allows you, the skilled trader, to make your own trading decisions while being better informed and understanding current market dynamics.

Chris Vermeulen
Technical Traders Ltd.
www.TheTechnicalTraders.com

Treasury Inversion and Political Fed Cycles

With so much news hitting the wires regarding the Treasury Inversion level and the “potential pending recession”, we wanted to shed a little insight into this phenomenon and what we believe the most likely outcome to be going forward.  Our researchers, at Technical Traders Ltd., believe the Treasure inversion is a reactionary process to overly tight US Fed monetary policies, consumer demand factors and outside cycle forces.  There is very little correlation to inverted Treasury levels and causation factors other than the US Fed and global central banks.  We believe consumers and consumer sentiment also play a role in setting up the conditions that prompt yield inversion.  The one aspect we believe everyone fails to consider is the uncertainty that is associated with major US election cycles.

The US Fed is obviously a driving force with regards to yields and consumer expectations.  In the past, the US Fed has rotated FFR levels up and down by enormous amounts (in some cases 200 to 500%+ over very short spans of time.  Consumers, you know those people, the ones that are the actual driving force of the local and state level economies, have been the the ones having to deal with wildly rotating FFR levels and the consequences of their debt rotating from 4~7% average interest rates to 8~25%+ average interest rates over the span of just a few years.

Take a look at this chart that highlights the current and previous US Federal Reserve FFR rate changes.  It is quite easy to see that consumers and business, on the receiving end of these changes, often swing from one extreme to another as the US fed makes these dramatic moves.  And, yes, that last 2400% number is correct.  The FFR went from 0.06% to 2.4% over the past 3+ years – do the math yourself if you don’t believe us.

Let’s talk about how the US economy operates as a host to the global economy for a second.  When the US economy is booming, it exports growth, opportunity, and activity to the rest of the world.  When the US economy is contracting, it exports contraction, diminishing opportunity and slower economic activity to the rest of the world.  This may be a bold statement to make, but it is true.  For the past 80+ years, the US economy has been the “mothership” of the global markets in terms of creating and exporting growth and opportunity for foreign nations.

The US Fed, therefore, has an incredible responsibility to safely navigate the current and future global expectations with regards to FFR levels and yield levels as the global economy expands and contracts with political, trade and social issues.  It is a very difficult process to navigate for anyone.

US Presidential Election cycles also play an important role in how these expansion and contraction cycles take place.  Anyone with any understanding of Music understands each note includes an “Attack” and “Decay” process.  The same thing takes place in economic cycles.  Within the Attack phase, the economy builds strength, capability, and output, just as the musical note does.  Within the Decay process, the economy begins to wain in strength, capability, and output, just as the musical note does.  The process within the global economy is very similar to an orchestra of musical instruments playing difference components of the music output.  Some play loudly and dramatically, others play softly and more demure.  The outcome is a finely balanced and enjoyable musical presentation.  The global economy is very similar to this and right now we are starting to see a slower, softer period of economic activity throughout the global economy.

Currently, the US is starting a new Presidential Election cycle where dozens of Democrats are lining up against President Trump.  This is sure to be a battle that will rival “Rocky II” in terms of scale and scope.  It is also starting far earlier than most normal mid-term Presidential election cycles.  This is one of the biggest reasons we believe the Treasury yields may stay rather muted for the next 12+ months while the end of the “attack phase” plays out for the global economy.  Eventually, the “decay phase” will begin within the global economy and we’ll start the process of waiting for the US Fed and central banks to rally opportunity with lower rates and possibly QE ventures.

We’ve highlighted the US Presidential Election “run-up” cycles (the hyperbole 16-month process that takes place before the actual elections) in BLUE on these charts.  It is fairly simple to see that the combination of the US Fed rate levels, US political controlling party policies and consumer sentiment related to these policies and economic factors have driven yields higher or lower throughout the past 50+ years.  In fact, the US and the Globe have recently transitioned from more of a regionally localized global economy to more of a centrally functioning global economy.  One thing has not changed, though, the US is still the largest of the global economic drivers and will continue to be for the foreseeable future.

 

When we take into consideration how these yield contractions have resulted in asset price changes in the US stock market, we need to compare these moves in yield with the expectations of traders, investors, and capitalists throughout the world.  Remember, the US stock market is currently, and has been, a pool asset valuation protection for global investors throughout the planet.  Over the past 40+ years, the US economy has exported opportunity and capacity throughout the globe while global investors have continued pour capital into US stocks, Bonds and Debt because of the strength of the US Dollar.

Our expectations are that the yield inversion, much like the inversion near 1980/1990 is the precipice of a renewed economic expansion as the planet develops new 21st-century trade, economic and political ties while shedding the 19th-century shackles that are currently binding it to obligation and debt originating from the 1960s through 1980s.  This transition period may be fraught with some dramatic price swings in assets, stocks and economic output levels.  Yet, we believe the outcome of this process will be a fantastic opportunity for skilled traders to find and execute tremendous upside pricing opportunities once it completes.

We have been completing a series of market cycle research that focuses on the alignment and timing of core global cycles.  By our research, 2027 and 2048 are key years for the global markets.  We believe 2027 will likely be a breakout year where the global markets align for an incredible upside price increase and we believe 2048 could be the year that the global economies exhibit some type of “metamorphosis” in terms of capacity and function.

In short, we believe these current inverted yields are nothing more than a “symptom” of the current political and US Fed FFR interest rate climate in combination with the current global economic output capacity and consumer sentiment.  To put it simply, after the US Fed raised rates by 2400%+ and the current trade and political issues are still unresolved – where do you expect yields to be moving?  Right, into further contraction while the US Fed tightens monetary policy and consumers react by tightening their spending.

Once the trade issues are resolved and the US Fed adopts a bit of easing in terms of current rates, we may continue to see have another year of wild and choppy market condition much like 2015, and 2018, but that all depends on what type of resolution there is with the current trade issues.

We’ll keep you informed of our research and longer-term date cycles as we continue to extract more concrete data from our research.  If you like our research and can clearly understand the value of having a team of dedicated market technicians and researchers working for you to help you find and execute better trades, then please visit www.TheTechnicalTraders.com to learn how we can help you.  This US presidential election cycle is going to have top billing for the next few months – get used to it and get used to the fact that the markets and yields will likely do what they always do within these cycles – muted price rotation where underlying fundamentals and consumer sentiment will likely drive future pricing.  Stay tuned and watch precious metals.

Chris Vermeulen
www.TheTechnicalTraders.com

20 Days Left to Find Buying Opportunities In Gold

Our researchers have been glued to Gold, Silver and the Precious Metals sector for many months. We believe the current setup in Gold is a once-in-a-lifetime opportunity for skilled traders to stake positions below $1300 before a potentially incredible upside price move.  We’ve been alerting our members and follower to this opportunity since well before the October/December 2018 downside price rotation in the US markets.

October 5, 2018: Prepare for a gold and silver rally

December 9, 2018: Waiting for gold to erupt

Jan 25, 2018: Why everyone is talking about gold and silver

Additionally, our researchers called the bottom in the US equities markets and warned of an incredible upside price rotation setting up just before the actual price bottom occurred on December 24, 2018.

December 26, 2018: Has the equities selloff reached a bottom yet

Our research continues to suggest that Gold and Silver will rotate within a fairly narrow range over the next 3~5 weeks before setting up a likely price bottom near April 21, 2019.  We’ve been predicting this bottom formation for many months and have been warning our followers to prepare for this move and grab opportunities below $1300 when they set up.

This first chart, a Monthly chart showing our TT Charger price modeling system, clearly illustrates the strength of this bullish price trend and the initiation of this trend back in early 2016.  One of the strengths of the TT Charger modeling system is that it establishes a number of key price data points and trend factors.  The background color highlighted ranges show price range breadth and range expansion or contraction.  The dual channel facets show where price is likely to find support and resistance.  The DOT LEVELS show where critical support or resistance is in terms of the overall trend channels.

Right now, we are still in a bullish trend with key support near $1165.  The Dual Channel system is showing the $1260 to $1285 level is currently the most likely active support levels just below current price.  Thus, we could see a move to near these levels over the next 3+ weeks and I would suggest skilled traders jump on this opportunity.  The Range system is showing a current $250~350 price range, thus, any upside price breakout could easily rally within this range and push prices at least $250+ higher than current levels – likely well above $1550.  If range expansion sets up, we could see prices well above $1750.

 

We’ve authored hundreds of research posts over the past 12+ months and the one thing that we continue to mention is that Fibonacci price theory continues to operate on the premise that “price must always attempt to find and establish new price highs or lows – at all times”.  Please keep this in mind as we continue.

Take a look at the TT Charger chart, above, and the raw Monthly price chart, below.  Price must always attempt to find and establish new price highs or lows – so where is price going based on the most recent price rotations?  Let’s review…

After rallying in early 2016 to establish a price high of $1377.50, gold immediately rotated downward to establish a higher low near $1124.50.  The $1377.50 high price was a “new price high” in terms of previous rotational highs while the $1124.50 low was a higher low price rotation point.  Thus, a failed “new price low”.

Since these two price points, Gold has settled into a sideways price channel where new price highs and lows have been attempted, but have failed to breakout out of the existing previous high and low price levels.  As a technician of price, we can immediately identify this as a possible “Pennant or Flag” formation.  With the last “new price level” being a “new price high” we still believe that Gold will attempt to break above the recent high price levels and attempt a much bigger upside price swing.

Our analysis suggests the April 21 date as a critical date for the potential price bottom in Gold and Silver.  Our belief is that this date will like result in a near-term momentum bottom in price.  Where price may fall, briefly, below $1290 and rotate into a “washout low” price rotation.  The opportunity for this move could come 3~5 days before or after the April 21 date.

 

This last chart, a Monthly price chart, illustrating the Pennant/Flag formation in Gold should be the clearest example we can provide that Gold will soon break out to the upside and rally extensively higher if our research and analysis are correct.  The momentum that has built up over the past 2+ years, as well as the global demand for Gold by central banks and by investors as a hedging instrument, could prompt Gold and Silver to rally at least 50~60% in this first upside breakout wave – resulting in $1900 gold prices.  Silver could rally to well above $18~19 in a similar move and the number our researchers believe may become the upside target in Silver is $21.

This big picture chart and technical pattern could still take months to unfold if the price is to test the lower end of the trading range at $1225.  If our analysis is correct, Gold and Silver could begin an upside price breakout shortly after April 21 (very likely to become evident in early May 2019).  The upside potential for this move is at least $1550 in Gold and at least $18 in Silver.

Please understand that any upside breakout in Gold and Silver will likely be associated with general global market weakness including the potential for some type of global crisis event.  This could be related to the EU, BREXIT, China, France or any other nation burdened by debt, dealing with election turmoil or related to social or economic angst.  We could almost throw a dart at a map of the globe and hit some area that is poised for some type of economic crisis.

Gold – Gold chart by TradingView

Our last buy signal for gold and gold miners was in Sept 2018 and subscribers and our team profited from that $100 gold rally. This next opportunity here is to understand that we only have about 20~25 days to search out and isolate the best entry prices we can find in Gold and Silver before our April 21 momentum bottom date hits.  This means we need to prepare for this upside breakout move in Precious Metals and prepare our other open positions for the possibility of extended downside pricing concerns.  If you read our continued research posts, you’ll understand that we believe the US stock market will rotate a bit lower prior to this April 21 date and rally as well.

We believe the US equities markets will become a safe-haven, like Gold, where foreign investors can balance the strength of the US Dollar with the strong US economy and continued equity price appreciation while more fragile nations deal with economic crisis events and debt concerns.  Thus, we believe capital will flood the US markets after April 21 as evidence of these economic concerns drives foreign investors into US equities.

Take a minute to find out why Technical Traders Ltd. is quickly becoming one of the best research and trading services you can find anywhere on the planet.  We are about to launch a new technology product to assist our members and we continue to deliver incredible research posts, like this one, where we can highlight our proprietary price modeling systems and adaptive learning solutions.  If you want to stay ahead of these markets moves and find greater success in 2019 and beyond Join Our Wealth Trading Newsletter Today.

Chris Vermeulen

Russell 2000 Leads The Way For Technical Analysts

The Russell 2000 ETF continues to deliver critical technical and longer-term price patterns for skilled technicians.  Combining the IWM chart with the Transportation Index, Oil, Gold, and others provide a very clear picture of what to expect in the immediate future.

Recently, we posted a research article about the Head-n-Shoulders pattern setting up in the $INDU.  Again, the IWM chart is also showing a very clear Head-n-Shoulders pattern with critical resistance near $159.50 and support near $144.25.  Our researchers, at Technical Traders Ltd., believe this right Shoulder will prompt a downside market move towards support near $144.25 before a downward sloping wedge pattern sets up.  This first downward price leg will setup and congesting wedge formation that will, eventually, break to the upside and drive market prices higher.

We authored a research article about this pattern setup on February 17, 2019.  You can read it here.

Skilled traders watch all the charts to assist them in identifying characteristics that can assist them in understanding price moves, key support/resistance levels, and price patterns.  This IWM chart should be on everyone’s radar at the moment.  Where the IWM finds support, so will the other US stock market indexes.

WEEKLY IWM RUSSELL 2000 INDEX PATTERN

 

The IWM setup indicates we may only see a 5~7% downside price swing before support is found.  We’ll have to watch how this plays out over the next few weeks/months to determine if the $144.25 level is true support or if the lower $137.00 level will become support.  Either way, the downside price swing appears poised to unfold over the next few days/weeks – so be prepared.

Please take a minute to visit www.TheTechnicalTraders.com to learn how we can help you find and execute better trades in 2019.  We have already positioned our clients for this move and we believe we can help you stay ahead of these markets.  Visit www.TheTechnicalTraders.com/FreeResearch/ to read all of our most recent research.

Chris Vermeulen

No Fed Hike – Stock Price Fake Out?

Our team has 53 years of 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.

RECENT CLOSED TRADES

Chris Vermeulen
Technical Traders Ltd.

Gold To Continue To Base Below $1320 For Weeks

Our research team, at Technical Traders Ltd., believes Gold will continue to base below $1320 for at least another 3~5 weeks before setting up a momentum price base.  Our research suggests general weakness in the US stock market over the next few weeks/months as a Head-n-Shoulders pattern unfolds.  Interestingly enough, our research also suggests Gold may continue to base below $1320 (likely below $1300) for at least another 2~4 weeks before forming a rounded bottom type pattern as a base.

This would likely result from a mild price rotation in the US major indexes and possibly weakness in the US Dollar.  Weakness in the US Dollar and Equities Markets may be just enough impetus to cause Gold to rotate into the Momentum Basing pattern we have been expecting since January 2019.  We’ve highlighted the price range, on the chart below, in purple.  We believe the price of Gold will re-enter this range at least once or twice over the next 2~4+ weeks to set up a basing pattern.  After April 21, we believe the basing pattern should be complete and a new upward price swing should begin.

We expect to attempt to target opportunities below the $1300 price level in Gold to accumulate a LONG position ahead of the upside breakout.  The opportunity for prices to stay below $1320 and for skilled traders to pick entry levels that are suitable for their futures should not be underestimated.  The next upside price leg in Gold will likely see prices well above $1450.

Take advantage of any price levels below $1290 because this may be the last time you see them for a while. We have also been sharing our stock market forecast looking forward 1-3 weeks from now which goes against everyone’s bias/sentiment including yours likely, but its something you should think about because you could give back a lot of profits if you don’t act now!

Please take a minute to visit www.TheTechnicalTraders.com to learn how we can help you find and execute better trades in 2019.  We have already positioned our clients for this move and we believe we can help you stay ahead of these markets.  2019 and 2020 are going to be incredible years for our subscriber the Wealth Building Trading Newsletter.

Chris Vermeulen

Dow Jones Head-N-Shoulders Pattern – Be Aware

Our research team believes a moderately mild price rotation will unfold over the next 30 to 60 days where the US Stock Market will rotate downward.  Particularly, the $INDU (Dow Jones Industrials) should move lower towards the $23,000 to 24,000 before finding support based on the longer term weekly chart. Keep in mind we are not saying the price is going to fall. We are stating price could correct in a big way if recent support levels are broken. If so, then 23,000-24,000 levels should be reviewed.

We have been warning about a specific price pattern that we believe is currently in the process of setting up in the US Stock Market.  This pattern is a “Falling Wedge” pattern.  We’ve seen a few of these over the past 5+ years in downward retracing price swings.  They typically act as a means for the price to explore a “momentum base” setup before breaking out to the upside.  You can read our previous research here.

Price weakness could begin to drive market prices lower over the next few weeks as this right Shoulder acts as critical resistance.  If you have not already prepared for this move, please try to understand the importance of this long term price pattern.  Head-n-Shoulders patterns are typically viewed as major resistance and a classic topping formation.  Our belief that the downside price swing from the right Shoulder is based on our predictive modeling systems results.  We believe this move will drive prices lower before support is found and our downward sloping wedge pattern sets up.  This wedge pattern will likely break to the upside during the Summer months.

This Head-n-Shoulders pattern is something all traders need to pay attention to.  This is a critical resistance/top formation that should drive prices lower over the next few weeks/months.  If you have not protected your long trades well enough or you have recently deployed a bunch of capital into the markets, we strongly suggest you develop a “Plan B” as we are likely to see a 5~10% correction before this downside swing is over.

Our team has 53 years of 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.

RECENT CLOSED TRADES

Chris Vermeulen
Technical Traders Ltd.

US Equities Price Anomaly Setup Continues To Unfold

This research post highlights what we believe to be a unique price anomaly setup in many of the US major markets this week.  Our research suggests that April 21, or near this date, will be an important price inflection point base level for the US stock markets.  We believe a unique price base will begin to form near this date and a bigger price move in May/June 2019 will unfold.

Our Advanced Dynamic Learning (ADL) price modeling system is suggesting the rotation in the US stock market may stay somewhat muted before this move on April 21 begins.  The ADL predictive modeling system is one of our proprietary price modeling utilities that our research uses to identify key levels of future support and resistance as well as to watch for “price anomalies” that setup.  Price anomalies are where the current price level of any symbol is greatly diverted from the ADL predictive price level.  When this happens, the price will usually “revert” back to near the ADL levels at some point in the immediate future – sometimes setting up a great trading opportunity.

This Daily YM chart shows a current price anomaly in the YM of about 1000 points.  This is a pretty big range for skilled traders that are capable of identifying the right trade.  The ADL system is suggesting that YM will rotate lower between now and the end of April by at least 800~1000 pts.

 

The next, Weekly, YM chart showing the ADL price modeling system is confirming the Daily ADL chart.  Both are showing a lower price rotation over the next few weeks.  Additionally, the Weekly ADL chart is showing a deep price low near May 1, 2019.  This aligns perfectly with our earlier analysis that May/June would start a bigger price rotation in the US stock market, global equities markets and precious metals. More on precious metals forecast in this video clip on TradingView.com

 

As we continue to move closer to these important dates, we’ll keep our followers informed of our research and our proprietary trading tools, yet the real opportunity exists by knowing how to trade these moves and how to take advantage of the total scope of these market.  Be prepared for a fairly large downside price swing in the YM over the next 5~7 weeks as the 24,800~25,000 attempts to set up support and a momentum base.

Please take a minute to visit www.TheTechnicalTraders.com to learn more about what we do and how we can help you stay ahead of these market moves.  Visit www.TheTechnicalTraders.com/FreeResearch/ to read all of our recent research posts.  We take great pride in our ability to provide our members and followers with the highest level of research, trading signals, daily video content and more.  Find our why our hundreds of members continue to believe in the opportunity we provide them each and every day.  Isn’t it time you invested in your future success – today?

Chris Vermeulen