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Gold Cycle Forecast Signals Bottom Is Near

It is absolutely amazing how the precious metals markets have followed our October 2018 predictions almost like clockwork.  Our call for an April 21~24 momentum base below $1300 followed by an extensive rally to levels above $1550 has been playing out almost like we scripted these future price moves.

Now that the $1550 level has been reached, we are expecting a rotation to levels that may reach just below the $1450 level before attempting to set up another momentum base/bottom formation.  And just like clockwork, Gold has followed our predictions and price is falling as we expected. Just look at our October 2018 chart where we forecasted the price of gold rallies and corrections along the way.

GOLD FORECAST & IS THE DEBT CRISIS ABOUT TO BE REBORN IN 2020?
https://www.thetechnicaltraders.com/is-the-debt-crisis-about-to-be-reborn-in-2020/

GOLD CYCLE FORECAST – DAILY CHART

Take a look at the most active cycles for gold and where our gold forecast is pointing to next. The downside rotation currently in Gold is likely not quite over yet and the gold mines will selloff the most.  This new momentum base should setup and complete once the gold cycles bottom.  The next upside price leg should push Gold well above the $1760~1780 level – so get ready for another big rally of 20%+.

GOLD MINERS SELL OFF – DAILY CHART

Unfortunately, so many traders are highly emotional and fall in love with positions in shiny metals or gold miner stock positions. Yet we all know if you trade on emotions or fall in love with a position, you are most likely to lose a ton of money. Two weeks ago I got so much flack from traders when I said gold miners were on the verge of a violent drop in price, then the bottom fell out and the dropped huge. Then last Thursday morning when gold, silver, and miners are trading up huge in pre-market and at the opening bell I warned it looked like a big fakeout and price could collapse for yet a second leg down and the same response from those emotional traders who love their positions and won’t sell them when they should as active traders.

HAVE YOU OUTPERFORMED GDXJ THIS YEAR?

If you like to trade in the precious metals sector then you most likely love to trade the gold miners ETF GDXJ. As you can see above GDXJ is only up 19.55% year to date. Sure, it’s a nice gain, but are you still holding your metals position knowing you just gave back most or all of your profits?

Being a technical analyst my focus is to only enter a position when the charts/analysis point to an immediate price advance or decline. I site in cash waiting for the next cycle top or bottom to form in an asset class like gold miners, gold, silver, or silver miners, and once the cycle starts I jump on the wave and ride it for the move until it shows signs that its weakening and will break. almost 50% of the year my portfolio is sitting in cash. And my average position only lasts around 12 days.

Take a look at all my precious metals related trades this year (2019) below. They are all winners, and total gain for subscribers of my Wealth Building Newsletter is 41.74% profit. More than double the return than if you were riding the GDXJ roller coaster for 9 months straight and all your money at risk.

My point here is that no matter how much you love metals (and I LOVE METALS), but you do not need to always be in a position in them. There are times to own, and times to watch with your money safely in cash.

CONCLUDING THOUGHTS:

The end result is that the fear and greed that is starting to show up in the precious metals markets may become an “unruly beast” if it continues to grow in strength and velocity.

Keep reading our research because our proprietary tools have been nailing all of these price targets and moves many months in advance.  The next bottom in metals should set up when our cycle bottoms – then the next upside leg will begin.  This time Gold should target $1800 and Silver should target $21 to $24.  This will be an incredible move higher if it plays out as we suspect.

I urge you visit my Wealth Building Newsletter and if you like what I offer, join me with the 1-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis. Join Now and Get a Free 1oz Silver Bar!

I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these supercycles are going to last years. A gentleman by the name of Brad Matheny goes into great detail with his simple to understand charts and guide about this. His financial market research is one of a kind and a real eye-opener. PDF guide: 2020 Cycles – The Greatest Opportunity Of Your Lifetime

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly.

Chris Vermeulen
www.TheTechnicalTraders.com

Gold Gifts Traders With Another Rotation Below $1500

Positive expectations related to the US/China trades negotiations on October 10th prompted a moderately strong upside move in the US major indexes and the stock market.

Additionally, the precious metals fell in correlation to the upside move in the US stock market and presented another opportunity for skilled technical traders to look for entries below $1500 in Gold and below $17.75 in Silver.

We can’t stress the importance of this critical $1500 price level in Gold as a key level for all traders to watch.  It has continued to provide key support for Gold since the price rally that initiated in late April 2019.  We believe this level will act as a relatively strong price “floor” going forward and any price activity below $1500 could represent a very opportunistic entry area for skilled traders.

Back in early September, we authored this research post highlighting what we believed would happen going forward 30 to 60+ days for Gold.  At that time, the price of Gold has just rallied above $1500 for the first time in 2019.

We alerted our followers that we believed Gold would stall near the $1550 level, move briefly towards the $1475 to $1500 level, set up a new momentum base near the $1500 price level and begin a new rally soon after this base was complete.  You can read this research post here: https://www.thetechnicaltraders.com/global-market-chaos-means-precious-metals-will-continue-to-rise/ .

GOLD WEEKLY CHART FROM OUR SEPTEMBER 2ND RESEARCH POST

This is a Gold Weekly chart from that September 2 research post.  We still believe our research from that post is accurate and we believe this new move below $1500 is an incredible opportunity for skilled traders that understand the real potential of the future of precious metals.

120 MINUTE GOLD CHART SHOWING PRICE CORRECTION WARNING BEFORE IT HAPPENED

This 120 Minute Gold chart showing the early price decline on October 10, 2019 and highlighting the $1500 price support zone in RED illustrates how price has continued to find this level acting as strong support and how price has, in the past, moved through this level and back above it to form the new “momentum base/bottom” near October 1, 2019.

We believe any move below $1500 (or more precisely – $1495) is a very strong entry point.  Obviously, a price move to lower levels would be even better.  Currently, as long as price stays above the Momentum Base level (near $1463), then we consider the October 1 price rotation the true momentum base “low”.

CURRENT DAILY CHART OF GOLD – SUPPORT ZONE, AND FORECAST

This Daily chart highlights the same $1500 price support zone and clearly illustrates why we believe any price move below $1500 is a very strong opportunity for skilled traders.  The next leg in Gold should push prices above $1700 (possibly higher).  Longer-term, we believe the fear and uncertainty in the global markets will not subside until well after the 2020 US Presidential election cycle completes.

CONCLUDING THOUGHTS:

Therefore, we have at least 12 to 16+ months of continued fear driving investor uncertainty in precious metals and as the US political chaos heats up, so will precious metals.  At this point, we believe Gold has just started to “lift-off” in terms of the ultimate upside potential over the longer term.  We’ve discussed the potential of Gold reaching above $3750 and we believe this target level is very valid.

Yesterday I talked about how to trade and where gold, silver and miners were within their bul/bear market cycle which may surprise you. Listen to my thoughts in this Podcast here.

Play these moves accordingly.  This may be the last time you see Gold trading below $1500 for quite a while.

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly.

Be sure to ride my coattails as I navigate these financial markets and build wealth while others lose nearly everything they own during the next financial crisis.

Chris Vermeulen
www.TheTechnicalTraders.com

NOTICE: Our free research does not constitute a trade recommendation or solicitation for our readers to take any action regarding this research.  It is provided for educational purposes only.  Our research team produces these research articles to share information with our followers/readers in an effort to try to keep you well informed.  Visit our web site to learn how to take advantage of our members-only research and trading signals.

Metals And VIX Are Set To Launch Dramatically Higher

The recent rotation in the US stock market and US major indexes have set up a very interesting pattern in the Metals and VIX charts.  Our researchers believe precious metals, Gold and Silver, are setting up a new momentum base/bottom and are beginning an early stage bullish price rally that may surprise many traders.  If you have not been following our research, please take a minute to read these past research posts :

September 24, 2019: IS SILVER ABOUT TO BECOME THE SUPER-HERO OF PRECIOUS METALS?

September 19, 2019: PRECIOUS METALS SETTING UP ANOTHER MOMENTUM BASE/BOTTOM

Our researchers believe the bottom in Metals has already set up on October 1, 2019.  This setup aligns with our earlier analysis that a new bullish price leg is setting up that will propel Gold to levels above $1600 before the end of November – possibly resulting in a rally that attempts to breach the $1700 price level.

DAILY GOLD CHART

Of course, for Gold to rally in this manner, some type of extended fear must enter the global markets.  We believe this fear could become known to traders within 3 to 10+ days based on our understanding of the schedules and calendars available within the news cycle.  The US/China trade talks appear to be breaking down again.  News that one of India’s largest banks is in the process of collapsing hit last weekend. And news that the US political parties are about to ramp up nearly all levels of activity ahead of the 2020 US Presidential election cycle is sure to throw the markets a few curve-balls.

As skilled technical traders, there are times when we must understand how the news cycles and external events can have dramatic impact on prices and trends in the financial markets.  These are times when we must protect our assets by deploying very skilled trades, proper position sizing and become even more skilled at understanding the global stock market dynamics.

DAILY SILVER CHART

Silver, or as we have termed it “The Super-HERO of Metals”, will likely move much higher, even faster than Gold.  If our research is correct, the next upside price leg in Metals will see Silver rally to levels well above $20, then stall briefly, then begin a move to levels above $26 (or higher).  The Gold to Silver ratio will likely fall to levels near 65 throughout this move.  That would mean that Silver would appreciate about 11% to 15% faster than Gold will appreciate over the next 60 to 90+ days.

VIX – DAILY VOLATILITY INDEX CHART

And finally, the VIX.  At this point, our research team believes a broader downside price rotation has already begun to set up in the US stock market (with Technology and “unicorn” sectors at severe risk) which may prompt a move in prices to retest the December 2018 lows.  This is why we believe the VIX is very likely to begin an upside price move over the next 30 to 60+ days and attempt to break above the 26 to 27 level as the US stock market reacts to increased fear and uncertainty.  This is, obviously, also why we believe Gold and Silver will begin to move dramatically higher very quickly.

September 17, 2019: VIX TO BEGIN A NEW UPTREND AND WHAT IT MEANS

CONCLUDING THOUGHTS:

Our researchers are attempting to follow all the news and price activity we can handle over the past 4+ weeks or longer.  At this point, it seems all the global markets are unstable in terms of price trends, extended volatility, and uncertainty.  We believe our expectations within the metals markets, us stock market and the VIX predictions are relatively saved expectations given the research we’ve completed.

It would be wise for skilled traders to prepare for a moderate to deep price correction at this point.  Price has failed to move higher above historic all-time high price levels and has begun to move lower.  Unless some extremely positive news, event or outcome is reached within the next 90+ days, it is very likely that price will continue to rotate within established ranges attempting to identify true support levels.  This ride could become very volatile – very quickly.

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly.

Be sure to ride my coattails as I navigate these financial markets and build wealth while others lose nearly everything they own during the next financial crisis.

I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these supercycles are going to last years. My simple technical trading strategy using ETFs will allow you to follow the markets closely and trade with it so you never get caught on the wrong side of the market with big losses.

Chris Vermeulen
www.TheTechnicalTraders.com

NOTICE: Our free research does not constitute a trade recommendation or solicitation for our readers to take any action regarding this research.  It is provided for educational purposes only.  Our research team produces these research articles to share information with our followers/readers in an effort to try to keep you well informed.  Visit our web site to learn how to take advantage of our members-only research and trading signals.

Natural Gas Reloads For Another Price Rally

As a technical trader, one has to really learn to appreciate when a trade “reloads” for another move higher.  Much like the Gold base/bottom in April 2019 below $1300 that we called back in October 2018.  When a trend confirms and we can see the potential for upside profits, but price performs a “deep pullback” withing that initial trend setup – it is almost like we’re dreaming.

After the downside rotation in Gold setup in April 2019, the next move higher pushed Gold prices up to $1550 from levels near $1275 – what a great move that was.  Now, imagine Natural Gas may give us another chance to get long below $2.30 with an upside target near $3.00 before mid-November?  Incredible – right?

Read our original research post here : https://www.thetechnicaltraders.com/has-the-basing-setup-in-natural-gas-completed/

Here it is, folks.  After setting up a very deep price base in August 2019, Natural Gas has, again, moved back into the basing zone and our historical price research still suggests October and November will be strongly positive for Natural Gas.  We believe the upside potential in Natural Gas could target $3.00 fairly quickly – possibly before mid-November 2019.

THIS DATA IS QUOTED FROM OUR ORIGINAL RESEARCH POST…

“Our research tools suggest that September has a 65% probability of rallying more than 6x the historical range.  This would suggest a rally potential of more than $2 exists in September for Natural Gas.  Our tools also suggest that October has a 75% probability of rallying more than 3.2x the historical range.  This would suggest a potential rally of more than $1.20 in October. “

DAILY NATURAL GAS CHART

WEEKLY NATURAL GAS CHART

Before you continue, be sure to opt-in to our free market trend signals newsletter.

This Weekly Natural Gas chart highlights the “bump” in price that happened in September and how price has fallen back into the basing zone.  It is almost as if the market forgot what Natural Gas should be doing, historically, at this time of the year.  Well, who cares.  If the markets are going to give us another chance at a +30% price rally – we’re not going to miss the opportunity to buy within the basing zone.

Our opinion is that any opportunity to buy below $2.40 is an adequate entry level.  Ideally, try to wait for levels below $2.30 if possible.  This new basing zone pricing may not last very long, so try to take advantage of lower prices when possible.  Ideally, the upside potential for this move should be fairly easy to target given the historical price patterns that consistently drive Natural Gas higher in October and November.

CONCLUDING THOUGHTS:

As skilled traders, we have to learn to take advantage of when the markets provide us with these extreme opportunities and setups.  We believe any upside move above $2.75 to $2.80 would be a suitable outcome for this extended basing pattern.  Gutsy traders could attempt to hold for levels above $3.00 – but we’re not confident that extreme price level will be reached quickly.

One thing most traders don’t understand is that the extreme winter weather that just hit the US and Canada last week could be a fairly strong indicator of early demand for heating oil, natural gas and other consumer energy products as an early winter may be setting up.  Either way, we believe this setup is a gift for skilled technical traders – don’t miss out.

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly.

Be sure to ride my coattails as I navigate these financial markets and build wealth while others lose nearly everything they own during the next financial crisis. Join Now and Get a Free 1oz Silver Round or Gold Bar and SPECIAL OFFER – CLICK HERE

I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these supercycles are going to last years. This quick and simple to understand guide on trading with technical analysis will allow you to follow the markets closely and trade with it. Never be caught on the wrong side of the market again and suffer big losses. PDF guide: Technical Trading Mastery

Chris Vermeulen
www.TheTechnicalTraders.com

Oil, Precious Metals, And US Market, All With Very Different Trends

Chris Vermuelen, Founder of The Technical Traders joins Cory Fleck to look at the charts for oil, gold and the US markets. While all are trending in very different directions the US markets are closing in on a very important level that if broken could be very bad for risk on investors. Also of note that oil has given back all the gains since the Saudi oilfields bombing.

Note – This interview was recorded Wednesday Oct 2nd late in the day.

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly.

Be sure to ride my coattails as I navigate these financial markets and build wealth while others lose nearly everything they own during the next financial crisis. Join Now and Get a Free 1oz Silver Round or Gold Bar and SPECIAL OFFER TODAY ONLY – CLICK HERE

I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these supercycles are going to last years. This quick and simple to understand guide on trading with technical analysis will allow you to follow the markets closely and trade with it. Never be caught on the wrong side of the market again and suffer big losses. PDF guide: Technical Trading Mastery

Chris Vermeulen
www.TheTechnicalTraders.com

Recorded conversation with analyst on Gold, Silver, Crude Oil

5 OTHER CRUCIAL WARNING SIGNS ABOUT THE US MARKETS TOPPING AND THE GOLD AND SILVER BULL MARKET

In early June I posted a detailed video explaining in showing the bottoming formation and gold and where to spot the breakout level, I also talked about crude oil reaching it upside target after a double bottom, and I called short term top in the SP 500 index. This was one of my premarket videos for members it gives you a good taste of what you can expect each and every morning before the Opening Bell. Watch Video Here.

I then posted a detailed report talking about where the next bull and bear markets are and how to identify them. This report focused mainly on the SP 500 index and the gold miners index. My charts compared the 2008 market top and bear market along with the 2019 market prices today. See Comparison Charts Here.

On June 26th I posted that silver was likely to pause for a week or two before it took another run up on June 26. This played out perfectly as well and silver is now head up to our first key price target of $17. See Silver Price Cycle and Analysis.

More recently on July 16th, I warned that the next financial crisis (bear market) was scary close, possibly just a couple weeks away. The charts I posted will make you really start to worry. See Scary Bear Market Setup Charts.

CONCLUDING THOUGHTS:

In short, you should be starting to get a feel of where stocks are headed along with precious metals for the next 8-24 months. The next step is knowing when and what to buy and sell as these turning points take place, and this is the hard part. If you want someone to guide you through the next 12-24 months complete with detailed market analysis and trade alerts (entry, targets and exit price levels) join my ETF Trading Newsletter.

Be prepared for these incredible price swings before they happen and learn how you can identify and trade these fantastic trading opportunities in 2019, 2020, and beyond with our  Wealth Building & Global Financial Reset Newsletter.  You won’t want to miss this big move, folks.  As you can see from our research, everything has been setting up for this move for many months.

Join me with a 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis.

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities starting to present themselves will be life-changing if handled properly.

FREE GOLD OR SILVER WITH MEMBERSHIP!

Kill two birds with one stone and subscribe for two years to get your FREE PRECIOUS METAL and get enough trades to profit through the next metals bull market and financial crisis!

Chris Vermeulen – www.TheTechnicalTraders.com

Massive Price Reversion May Be Days or Weeks Away

Our researcher team believes a massive global market price reversion/correction may be setting up and may only be a few days or weeks away from initiating.  Our team of dedicated researchers and market analysts have been studying the markets, precious metals, and most recently the topping formation in the ES (S&P 500 Index).  We believe the current price pattern formation is leading into a price correction/reversion event that could push the US major indexed lower by at least 12 to 15%.

Historically, these types of price reversion events are typically considered “price exploration”.  Over time, investors push a pricing/valuation bias into the markets because of expectations and perceptions related to future market valuations and outcomes.  What happens when these current valuation levels and future expectations shift perspective from optimistic to potentially overvalued is that a price reversion event takes place.  This happens when investors shift focus, determine value exists at a different price level and abandon previous valuation expectations.

The rotation in price is actually a very healthy process that must take place from time to time.  The structure of price waves (for example Elliot Wave, Fibonacci, Japanese Candlestick, Gann and other price theories) are based on this process of price rising to overbought levels, then retracing to oversold levels – again and again as price trends higher or lower.  This is the process of “price exploration” – just as we are describing.  In order for price to trend higher or lower over time, price must move in the wave like pattern to identify true value (retracement/reversion) and extended value (a rally or selloff) in a type of wave formation.

Here are examples of the typical price wave formations within an extended or intermediate-term price trend, but before you continue quickly opt-in to our Free Market Trend Newsletter.

These price formations/structure are inherent in all price activity/movement in every financial instrument traded throughout the world.  They are the underlying structural foundation of all price activity and the basis of Elliot Wave, Fibonacci, Japanese Candlestick and many other price theories.

WEEKLY CUSTOM VOLATILITY INDEX

Our Custom Volatility index is highlighting a very interesting pattern/setup currently that suggests a moderate price reversion may take place over the next few days/weeks.  We’ve highlighted these patterns on the chart below illustrating how our Custom Volatility index helps to identify these types of patterns.  They form after a moderately deep price decline, the first downside (RED) line shown in these examples, and are followed by a moderate price recovery.  Then, a deeper price decline sets up only 3 to 5 weeks after the initial price bottom resulting in what can sometimes be a very broad market decline.

For example, the decline in February 2018 resulted in a very moderate second price decline compared to the initial selloff.  The October 2018 price decline resulted in a similar pattern on our Custom Volatility index, but the second price decline was much deeper and more violent than the example in February 2018.  This is the type of price correction that we are expecting to see happen within the next 2 to 4 weeks.

The current price rotation on our Custom Volatility index mirrors the previous rotations almost perfectly and the new breakdown event should only be 3 to 10+ days away from starting.  The big question is “will this be a moderate price reversion event or a more violent price reversion event like we saw in November/December 2018?”

WEEKLY CUSTOM SMART CASH INDEX

Our Custom Smart Cash Index is suggesting weakness is dominating the global markets right now.  We would expect to see our Smart Cash index rise as investor expectations rally and as global stock markets rally.  Yet, this index has been steadily moving lower as weakness dominates investor sentiment.  We believe we may begin a new price reversion event (a price breakdown) on some news event or economic that could push the global stock market dramatically lower – possibly my 12%+ or more.  Our earlier, August 19th breakdown predictions, suggested a downside breakdown could result in a 16% to 24% market correction – these levels are still very valid.

WEEKLY DOW JONES INDEX

The Dow Jones Index is setting up a DUAL-FLAG (pennant) formation that has kept our researchers entranced over the past few months.  This very broad market patter strongly suggests a very violent and explosive price move is just days or weeks away.  We’ve highlighted the “Flag Apex Range” on this chart to show you where and when we expect this explosive move to begin.  Investors need to be very aware that these flag/pennant formations are extremely close to reaching the breakout/breakdown APEX and all of our other research tools are suggesting a move lower is the highest probability outcome given the current markets setup.

CONCLUDING THOUGHTS:

As we’ve stated earlier, the global markets are very much “waiting on news events”.  It appears fundamentals and earnings are driving only 30~40% of the market movement recently.  NEWS is driving 60% to 70% of the global markets price rotation.  Geopolitical news, commodity supply news, war or any other aggression news is also very important in today’s world.  Pay attention to the news items that hit the markets as the global central banks attempt to navigate the undulating global market environment.

Our advice for skilled technical traders would be to protect everything from risks and prepare for some very extreme volatility over the next 3 to 15+ days.  We believe the APEX even is about to happen and it could become a massive price reversion event.

I urge you visit my Wealth Building Newsletter and if you like what I offer, join me with the 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis. Join Now and Get a Free 1oz Silver Round or Gold Bar!

I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these supercycles are going to last years. This quick and simple to understand guide on trading with technical analysis will allow you to follow the markets closely and trade with it. Never be caught on the wrong sie of the market again and suffer big losses. PDF guide: Technical Trading Mastery

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly.

Chris Vermeulen
www.TheTechnicalTraders.com

NOTICE: Our free research does not constitute a trade recommendation or solicitation for our readers to take any action regarding this research.  It is provided for educational purposes only.  Our research team produces these research articles to share information with our followers/readers in an effort to try to keep you well informed.  Visit our web site (www.TheTechnicalTraders.com) to learn how to take advantage of our members-only research and trading signals.

Precious Metals Setting Up Another Momentum Bottom

Just as we predicted, precious metals are setting up another extended momentum base/bottom that appears to be aligning with our prediction of an early October 2019 new upside price leg.

Recent news of the US Fed decreasing the Fed Funds Rate by 25bp as well as strength in the US stock market and US Dollar as eased fears and concerns across the global markets.  These concerns and fears are still very real as the overnight credit market has continue to illustrate.  Yet, the precious metals have retraced from recent highs and begun to form a momentum base which will likely become the floor for the next move higher.

The one aspect that many traders don’t grasp just yet is that the US market could continue to push higher, just as they’ve done over the past few months, while precious metals continue to push higher, just as they’ve done over the past few months.  The reality is the fear and greed driving the upside price move in metals is related to foreign market concerns (China/Asia, Europe/EU/BREXIT, Arab/Iran/Israel, and others).  The true fear is that some type of war or economic event will start while the global markets are fragile.  The recent news that the overnight Repo Market is seizing is another indication that the global credit market is very fragile.  What will it take to launch metals higher?  We believe the world is waiting for this next event to happen while this momentum base continues to set up.

GOLD DAILY CHART

This Gold Daily chart highlights the momentum base setup between $1480 and $1525.  Any entry below $1500 is a relatively solid entry point for skilled technical traders.  The next upside target based on our Fibonacci price modeling tool is $1795.  Thus, the real upside move potential at this point is another +20% for Gold.

SILVER DAILY CHART

Silver is setting up a similar momentum base pattern after reaching levels just below $20 per ounce.  We still believe the early October breakout date is relevant and we believe the next upside target will be between $21 to $24 in Silver.  Any entry level below $17.60 is a solid area for skilled technical traders preparing for the next upside price leg.

There has been a lot of talk from analysts and researchers that Gold could rally well past $5,000 if the markets collapse.  One analysis came out recently and suggest Gold could rally above $23,000.  We are a bit more conservative with our initial upside target of $3,750.

The bottom line is you really don’t want to miss this opportunity in the precious metals markets once it forms a bottom and starts to rally.  This recent price rotation is a gift for skilled technical traders.  If you were to take a minute and really consider how precious metals would react to a foreign market credit collapse on top of the potential for a collapsing economic outlook resulting from the credit collapse, you’ll quickly understand that trillions of dollars will be seeking safety and security in the metals markets in due time.

My Wealth Building ETF Newsletter will hold your hand, and tell you what trades to take as these events unfold including the entry price, price targets, and most importantly stop prices. If you like what I offer ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis. Join Now and Get a Free 1oz Silver Round or Gold Bar!

Chris Vermeulen
Technical Traders Ltd.

METALS ARE FOLLOWING DOWNSIDE SELL OFF PREDICTION BEFORE THE NEXT RALLY

It is absolutely amazing how the precious metals markets have followed our October 2018 predictions almost like clockwork.  Our call for an April 21~24 momentum base below $1300 followed by an extensive rally to levels above $1550 has been playing out almost like we scripted these future price moves.

Now that the $1550 level has been reached, we are expecting a rotation to levels that may reach just below the $1490~1500 level before attempting to set up another momentum base/bottom formation.  And just like clockwork, Gold has followed our predictions and price is falling as we expected. Just look at our October 2018 chart where we forecasted the price of gold rallies and corrections along the way.

GOLD FORECAST & IS THE DEBT CRISIS ABOUT TO BE REBORN IN 2020?
https://www.thetechnicaltraders.com/is-the-debt-crisis-about-to-be-reborn-in-2020/

GOLD MINERS SELL OFF – DAILY CHART

Unfortunately, so many traders are highly emotional and fall in love with positions in shiny metals or gold miner stock positions. Yet we all know if you trade on emotions or fall in love with a position, you are most likely to lose a ton of money. Two weeks ago I got so much flack from traders when I said gold miners were on the verge of a violent drop in price, then the bottom fell out and the dropped huge. Then last Thursday morning when gold, silver, and miners are trading up huge in pre-market and at the opening bell I warned it looked like a big fakeout and price could collapse for yet a second leg down and the same response from those emotional traders who love their positions and won’t sell them when they should as active traders.

The downside rotation currently in Gold is likely not quite over yet and the gold mines will selloff the most.  This new momentum base should setup and complete above $1455~1465 as a true Fibonacci price rotation completes.  The next upside price leg should push Gold well above the $1760~1780 level – so get ready for another big rally of 20%+.

 

CAN YOU OUTPERFORM THE GDXJ?

If you like to trade in the precious metals sector then you most likely love to trade the gold miners ETF GDXJ. As you can see above GDXJ is only up 19.55% year to date. Sure, it’s a nice gain, but are you still holding your metals position knowing you just gave back most or all of your profits?

Being a technical analyst my focus is to only enter a position when the charts/analysis point to an immediate price advance or decline. I site in cash waiting for the next cycle top or bottom to form in an asset class like gold miners, gold, silver, or silver miners, and once the cycle starts I jump on the wave and ride it for the move until it shows signs that its weakening and will break. almost 50% of the year my portfolio is sitting in cash. And my average position only lasts around 12 days.

Take a look at all my precious metals related trades this year (2019) below. They are all winners, and total gain for subscribers of my Wealth Building Newsletter is 41.74% profit. More than double the return than if you were riding the GDXJ roller coaster for 9 months straight and all your money at risk.

My point here is that no matter how much you love metals (and I LOVE METALS), but you do not need to always be in a position in them. There are times to own, and times to watch with your money safely in cash.

 

 

GOLD EXPECTATIONS – DAILY CHART

The one aspect of all of this that all skilled technical traders need to keep in mind is that this initial upside price move in precious metals is very indicative of extended fear and greed in the global markets.  We all need to understand how every upside move of $10 in Gold related to a new, high, extreme fear level related to the global markets.  The bottom in Gold, near November 2016, was in relation to fear that the global markets would become, potentially, rattled by the new US president.  The continued upside move in Gold is less of that extended fear as we are entering the new US 2020 presidential election cycle.  At this point, it is related to the fear that the global markets have extended beyond means to sustain future growth expectations and that central banks may be losing control (and the ability to manipulate) the global financial markets.

The end result is that the fear and greed that is starting to show up in the precious metals markets may become an “unruly beast” if it continues to grow in strength and velocity.

 

SILVER EXPECTATIONS – DAILY CHART

Our expectations with Silver was that it would stall just below $17, rotate downward briefly and then begin another upside move – somewhat inline with Gold.  What really happened is that Silver prices extended to levels just below $20 before weakening.  This is partially due to the fact that metals suddenly became more “in focus” for global investors and also partially due to the fact that Silver suddenly became a “hot topic” because of the Gold/Silver ratio that continued to stay above 86~89.  Once traders realized the incredible value that Silver really presented – it seemed everyone started piling into the silver trade and we believe this increased volume drove prices towards the $20 level.

Still, Silver has recently rotated lower again, moving to levels below $18 and following Gold into a momentum basing pattern.  We do believe Silver and Gold may have a bit further to go to the downside before really finding support.  Our researchers believe Silver may target the $17 price level before completing the momentum base.  If this is the case, skilled traders should look for opportunities below $17.40 and get set up for the next upside price leg.

 

Keep reading our research because our proprietary tools have been nailing all of these price targets and moves many months in advance.  The next bottom in metals should set up within the next 10~15+ days – then the next upside leg will begin.  This time Gold should target $1800 and Silver should target $21 to $24.  This will be an incredible move higher if it plays out as we suspect.

I urge you visit my Wealth Building Newsletter and if you like what I offer, join me with the 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis. Join Now and Get a Free 1oz Silver Round or Gold Bar!

I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these supercycles are going to last years. A gentleman by the name of Brad Matheny goes into great detail with his simple to understand charts and guide about this. His financial market research is one of a kind and a real eye-opener. PDF guide: 2020 Cycles – The Greatest Opportunity Of Your Lifetime

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly.

Chris Vermeulen
www.TheTechnicalTraders.com