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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

US Indexes Continue To Rally Within A Defined Range

This week ended with the S&P, Dow Industrials and Nasdaq stalling near recent highs.  From a technical perspective, both Thursday and Friday setup small range price bars (Doji candles or small Spinning Top type bars) after the upside price move on Wednesday.  These are indicative of price consolidation and indecision.

The news events that initiated this rally, nearly a week ago, continue to drive sentiment in the markets.  Yet the news from the ECB that new stimulus efforts would begin with $20 Billion Euros monthly invested in assets until they decide it is not required any longer suggests the EU is desperate to support extended growth and some renewed inflation.  This move by the EU pushed banks and the finance sector higher while the US stock market stalled near the end of the week.

At these lofty levels, almost all of our indicators and predictive modeling systems are suggesting the US stock markets are well within an overbought mode.  Of course, the markets can continue in this mode for extended periods of time as central banks and external efforts to support the asset/stock market continues, at some point investors/traders will recognize the imbalance in price/demand/supply as a fear of a price contraction.

We are very cautious that the market is setting up a lofty peak at this time.  It is important for traders and investors to understand the global situations that are setting up in the markets.  With precious metals moving higher, it is important to understand that FEAR and GREED are very active in the markets right now.  The continued capital shift that has been taking place where foreign investors are shifting assets into US and more mature economies trying to avoid risks and currency risks is still very active.  Yet the lofty prices in certain segments of the US stock markets means that this capital shift may take place where investment capital is shifted away from more risky US assets (high multiple speculative stocks) and into something that may appear to be undervalued and capable of growth.

The shifting focus of the global markets, the EU and the continued need for stimulus at this time is somewhat concerning.  Our view is to watch how the global markets play out and to maintain a cautious investment strategy.  We shifted into an extremely cautious mode back in February/March as the US market completed the October/December 2018 breakdown and precious metals started a move higher.  We continue to operate within this extremely cautious investment mode because we believe the foundation of the global markets are currently shifting and we don’t believe the stability of the markets is the same as it was after the February 2017 market collapse.

What do we believe is the result of this shift in our thinking?  This is very simple.  We are entering into the final 13+ months of the US presidential election cycle, the trade wars between the US and China continue to drag on with is muting economic activity, the EU continues to battle to find some growth/inflation while Great Britain attempts to work out a BREXIT deal as soon as possible.  Meanwhile, we continue to try to find opportunities in the markets with these extreme issues still pending.  We don’t believe any real clarity will happen until we near October/November 2020. Be sure to opt-in to our Free Trade Ideas Newsletter to get more updates.

This ES Weekly chart highlights the range-bound price rotation that currently dominates the US stock market.  Overall, the US stock market and the economy are much stronger than any other economy on the planet.  The risk factor is related to the fact that the capital shift which has been pushing asset prices higher as more and more capital flows in the US stock market may have reached a point of correction (headed into the US presidential election cycle).  As long as price stays within this range, we believe continued extreme volatility will continue.  Our Fibonacci system suggests price must close above 3178 to qualify as a new bullish trend and/or close below 2577 to confirm a new bearish trend.

This Transportation Index weekly chart shows a similar setup.  Although the Fibonacci price trigger levels are vastly different.  Price would have to climb above 11,475 to qualify for as a new bullish trend whereas it would only have to fall below 10,371 to qualify as a new bearish trend.  Given the past rotation levels, it is much more probable that price may rotate into a bearish trend before attempting to reach anywhere near the bullish price trigger level.

Our Custom volatility index suggests price has rallied last week well into the upper “weakness zone”.  This move suggests the upside price move may already be well into the overbought levels (again) and may begin to stall.  Traders need to be cautious near these level.  We continue to suggest that skilled technical traders should look to pull some profits from these lofty levels to protect cash/profits.  Any extreme volatility and/or a bigger price rotation could be disastrous for unprepared traders.

We are excited to see what happens early next week.  News will be a big factor – as it always is in this world.  Pay attention to how the markets open early this week and keep your eyes open for any crisis events (wars, bombings or other geopolitical news).  And get ready for some really big volatility to hit the global markets.

This is the time for skilled technical traders to really shine as these bigger moves roll on.

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.

So, if you believe in technical analysis, then this is the newsletter and market condition for you to really shine, especially with my trading indicators coming online.

Be prepared for these 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.

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.

I can tell you that huge moves are about to start unfolding not only in currencies, 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. 2020 Cycles – The Greatest Opportunity Of Your Lifetime 

FREE GOLD OR SILVER WITH SUBSCRIPTION!

Chris Vermeulen – www.TheTechnicalTraders.com

Can Oil Stay Above $50 To Support Producers Expectations?

Recent news suggests that oil producers are attempting to increase production levels after failing to attempt to push prices higher by cutting production levels.  Globally, oil producers want to see oil prices rise above $65 ppb in an effort to support profit and production cost expectations.  The real issue for the nation/states that rely on oil production/sales is that the global economy may not cooperate with their expectations over the next 24+ months. Before we get into the details, be sure to opt-in to my Free Market Forecast and Trade Ideas Newsletter so stay on top of these market moves.

On August 6th, 2019, we posted this article suggesting that Natural Gas and Crude Oil were setting up diverging trades.

August 6th, 2019: NATURAL GAS AND CRUDE OIL – DIVERGING SETUPS FOR TECHNICAL TRADERS

At that time, we wrote that we expected Crude oil to break lower from the $62 ppb level and target $55, then $49 based on our original Crude Oil research from May 21, 2019.

Additionally, on July 29, 2019, we authored and posted this article suggesting that Crude Oil would begin a downside move from $55 to levels near $50 :

All of this research was related to our Adaptive Dynamic Learning (ADL) research post from July 10, 2019: https://www.thetechnicaltraders.com/predictive-modeling-suggest-oil-headed-much-lower-by-early-2020/

This incredible predictive modeling research suggested that Oil would move dramatically lower towards the $50 level, then stall near $50 to $55+ through September and October.  Ultimately breaking lower in late October/November to levels near or below $40.

Crude Oil Daily Chart Analysis

Our researchers believe Crude Oil could become very volatile as price nears the apex of the Pennant/Flag formation that is setting up.  This Daily chart highlights the attempted “scouting party” price rotation above the price resistance channel.  The news over the past holiday weekend suggests the global economy may not see any real bump in activity over the next 12+ months and we believe this aligns with our longer-term research that Oil should target the sub $40 price level before the end of 2019 and potentially fall to levels below $30 in early 2020.

Crude Oil Weekly Chart Analysis

We believe the key to all of this price rotation is the $50.50 level and what price does over the next 30 to 60+ days.  There is a potential that price may attempt a brief upside move over this span of time, but the true intent of price is to move lower based on our ADL price modeling system.  Therefore, we believe the downside potential is the most opportunistic for traders.  The next price target based on our Fibonacci bearish price trigger level is the $45 price range.

CONCLUDING THOUGHTS:

This move could take place quickly, over the next 2 to 3 weeks on a breakdown move, or over many months.  Watch the $50.50 level as that is the key.  If the price falls to any level below $50.50, then we could be moving towards the $45 level or even the $40 on a big move related to global economic expectations.  Otherwise, expect the price to move towards the $50.50 level over the next few weeks as this support level is key to all future moves.

As we wait for the next leg to start to move prices lower, pay attention to any upside price activity as that may present a very clear entry point for skilled technical traders.

We believe our super-cycle research and other proprietary modeling systems are suggesting that price weakness will dominate the markets for the next few months. Ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis and recession.

In short, you should be starting to get a feel of where commodities and asset class is headed for the next 8+ 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.

FREE GOLD OR SILVER WITH SUBSCRIPTION!

Chris Vermeulen – www.TheTechnicalTraders.com

Energy Sector Setting Up For Another Big Trade

Our research team has been nailing some really great trades recently in Gold, Silver, Crude Oil, ETFs, and many other market segments.  Some of these trades have resulted in fantastic gains of +10% to +20% for our members.

One trade in particular that we called back in July was the Energy trade in Crude Oil and ERY.  Specifically, we suggested that Crude Oil would fall based on our ADL predictive modeling system and that ERY would set up a very nice trade with targets set relatively close to the basing/bottom pattern. But first, be sure to opt-in to our free market forecast signals newsletter

You can read our original research here:

July 10, 2019: PREDICTIVE MODELING SUGGEST OIL HEADED MUCH LOWER

July 26, 2019: ENERGY SETS UP TWO NEW TRADES – HERE THEY ARE

While the original setup resulted in a fantastic trade setup and completion – where both targets hit and the price extended more than $10 beyond our Target 2, we are now alerting you that ERY will likely set up another, even bigger, opportunity over the next 30+ days.

We believe our previous research, particularly related to Crude Oil, will result in ERY rotating lower over the next 20+ days, possibly towards the $50 level, before setting up another momentum base and beginning an upside move targeting the $70 to $75.  If our research is correct, this move will come at a time when global markets are expecting must slower economic activity and/or a massive supply glut in Oil.

Daily ERY Chart (Inverse Energy Sector ETF)

This Daily ERY Chart shows the original trade setup that occurred after our July 26 post and includes the original target levels drawn as YELLOW ARROWS on the chart.  It is easy to see the success of this trade and how ERY rotated higher as Crude Oil weakened.

Weekly ERY Chart (Inverse Energy Sector ETF)

This Weekly ERY chart highlights what we believe will be the next trade setup which will start to complete the momentum base sometime near the end of September or into early October.  We expect the rally in ERY to begin in mid-October and carry on into November, based on our ADL predictive modeling system (see the original article listed above).

We believe the downside rotation in ERY that we are expecting will coincide with a moderate upside move in Crude Oil over the next 30+ days before a bigger breakdown in Oil prices creates this incredible opportunity in ERY.  Skilled technical traders just need to wait for the momentum base to complete. I just posted this gold and silver trading setup unfolding here.

Check out these exciting charts full of opportunities that we will be sharing.

CONCLUDING THOUGHTS:

If you follow our ADL predictive modeling system’s research, you’ll see that it expects Crude Oil to break down to levels below $40 before or near the end of 2019.  That move could come quicker than we expect is global markets accelerate the economic slowdown we’ve seen recently.  We’ll keep you informed of this, and other, great trades as they setup.

Ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis.

In short, you should be starting to get a feel of where commodities and asset class is headed for the next 8+ 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.

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 SUBSCRIPTION!

Chris Vermeulen – www.TheTechnicalTraders.com

Markets Ready to Pop, But Up or Down?


CONCLUDING THOUGHTS:

Be sure to opt-in to our free market forecast newsletter

Ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis.

In short, you should be starting to get a feel of where commodities and asset class is headed for the next 8+ 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.

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. 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 starting to present themselves will be life-changing if handled properly.

FREE GOLD OR SILVER WITH SUBSCRIPTION!

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

Dow Plunge, Gold, Bonds Rally – AUDIO PODCAST


NEXT MOVES FOR GOLD, SILVER, MINERS, AND S&P 500

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.

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

We 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.

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.

JOIN ME AND TRADE WITH A PROVEN STRATEGY TODAY!

Chris Vermeulen
www.TheTechnicalTraders.com

Silver Should Pause At $16.75 Before Next Rally Starts

Our advanced Fibonacci price modeling system is suggesting that the current Silver rally may be nearing a point where the price will pause and retrace a bit before advancing further.  The incredible breakout rally over the past few weeks in Silver was a real surprise for many investors.  The sleepy shiny metal that everyone thought was dormant broke well above the $15.50 level on huge volume and continued to rally to levels near $16.65.

We published some incredible research regarding the longer-term potential for precious metals – specifically the potential for Silver as the Gold/Silver ratio continues to decline.  Please take a minute to read this research post PART I.

We believe the upside potential for Silver is, at a minimum, targeting $26 to $34 for an immediate upside price objective.  Overall, longer-term, we believe Silver could rally well above $50 as the Gold/Silver ratio falls to levels below 65.

This Daily Silver chart highlights our Fibonacci price modeling system and shows you that price has already reached the upside price objectives for this current expansion leg.  Sometimes price may rally beyond these levels (in extreme trending), but we believe the recent pause in the rally suggests the price will rotate lower (to levels near $16) before attempting another upside rally leg.  We’ve highlighted what we believe will happen with arrows on the chart and we believe the next leg higher will align closer to the early August time-frame.

This Weekly Silver chart also highlights our Fibonacci price modeling system, yet it shows the longer-term price modeling results.  Overall, the CYAN level, near $16.65, is acting as our first level of moderate price resistance.  We believe the support from the previous price peak, drawn as a MAGENTA LINE, will act as support and price will rotate between current levels and this support level before forming a momentum base and attempting to move higher – targeting the $18 to $18.50 level.

Take advantage of this price rotation before the next move higher.  Silver is extremely undervalued in comparison to Gold.  Any reversion of the Gold/Silver ratio, which is already taking place, will mean that Silver will rally 30% to 60% faster than Gold rallies. This will happen because the disparity in price between Gold and Silver has reached an extreme level.  As precious metals rally, this disparity level decreases.  Silver moves higher much quicker because it continues to be extremely undervalued compared to Gold and is more affordable nicknamed “poor man’s gold”.

There are dozens of great trades setting up right now in preparation for the August 19 price peak/price rotation that we predicted months ago.  The markets are setting up for some really big swing trades and we urge all traders/investors to be prepared for these moves by joining my Wealth Building Newsletter

If you want to see 5 other crucial warning signs about the US markets topping and the pending gold and silver bull market just take a look at this short video and charts.

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 NewsletterYou 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

What Could The Next Gold Rally Look Like? Part I

I have been going over the past data to attempt to identify future price targets and to help traders understand the true potential for the current precious metals price rally.  We’ve been sharing our data and research with you for many months are pleased to continue to share our predictive modeling system’s outputs and data.  Today, we wanted to play a bit of “what if” with the data in an attempt to relate just how explosive this move in precious metals may be over the next 6 to 12+ months.

Given our belief that precious metals prices will hold last weeks breakout to the upside and that Gold will rally in a parabolic price mode, we have attempted to identify how Silver would react given the price advance of Gold and the historic price ratio between Gold vs. Silver.

A number of pricing dynamics are taking place throughout the global stock markets and the historical measures of price relationship in advancing and declining markets could help us better understand the potential upside for Silver as the price of Gold continues to rally.  Here we go with our “what if” results.

Gold Fibonacci Price Amplitude – Weekly Chart

You may remember when we were calling for Gold to rally from $1200 to just above $1300 earlier this year?  We warned that once this move completed, a pause and pullback back below $1300 would set up a “Momentum Base” near April 21 that would become the launchpad for a much bigger move to the upside.  Now that we’ve seen this setup complete almost exactly as we predicted months in advance, we are waiting for the price to breach the Fibonacci Price Amplitude Arc that is currently acting as resistance for Gold (see the chart below).

Once this level is broken, we believe Gold will rally to levels near or above $1560 and attempt to set up another “Momentum Base” somewhere between $1560 and $1640.  This price level represents a key price zone where multiple price inflection points align and where a larger Fibonacci Price Amplitude Arc exists.  It is very likely that price will run into resistance near this zone – although it may become very brief price resistance.

Let’s assume that Gold could target various upside price levels in the near future and that Gold may attempt to reach levels just below $2000 before the end of this year (2019).  We’ve broken our research into price segments that will help us understand and breakdown Gold price advancement levels for future reference.  We’ve selected : $1650, 1750, 1850 & 1950 price levels for our research.

The Gold/Silver ratio chart, below, highlights the incredible rotation we’ve recently witnessed as Silver exploded higher last week.  Gold followed this move higher roughly 24 hours later.  The ratio between the price of Gold vs. Silver was at historical highs near 93 just a few days ago.  Currently, it is at 88.1 – after Silver rallied to help close the price gap between the two metals.  As you can also see from this chart, historical normal price levels are much closer to the 45 to 65 range.

What happens when this Gold/Silver ratio value becomes extended is that Gold holds more value than Silver.  Silver is a precious metal that is often overlooked because Gold is the primary focus of metals traders.  Yet, when a panic hits the global stock markets and Gold begins to move dramatically higher, Silver becomes an incredible opportunity as traders pile into Silver expecting it to close the price ratio gap quickly.

How big is this price disparity between Silver and Gold?  How much more will Silver potentially rally if Gold hits certain key upside price targets?  You should take a look at my article talking about the best metal to own for 2019 and beyond here. I compare gold, silver, platinum, and palladium. Let’s find out and explore some really incredible opportunities.

CONCLUDING THOUGHTS:

Using special reference points, the current ratio level, and our expected ratio level, we can determine that for every drop of 5.0 points in the ratio level, the price of Silver should increase by 6.5% to 7.5% to the price of Gold.  Therefore, if Gold trades higher to $1500 and the ratio drops from 88 to 83, Silver should be trading at a level of $18.29.

We determined this ratio relationship process by identifying “anchor points” within the historic ratio chart, mapping out price levels that occur at these levels in advancing and declining metals markets, then mapping the corresponding ratio relationships so we could attempt to make these types of predictions.

Just wait to and see our PART II the shows what silver should do just reach a normal price ratio in tomorrows article!

I love to take on these types of challenges and to play “what if”.  The idea that we may find some unknown or unseen opportunity for traders and investors is very exciting.  We’ll share more of our research in Part II of this article and we’ll show you exactly what we expect to happen in the metals markets as the ratio continues to “revert”.

In short, the opportunities for skilled technical traders over the next 16+ months is incredible.  Huge price swings, incredible trends, big rotations and we could see nearly 300%+ profits to be had if you know what to trade and when.  These types of opportunities are perfect for skilled technical traders like us and we want to help you prepare for and trade these opportunities.

This bear market for stocks and the new bull market for metals has been a long time coming, but finally, almost all the signs are showing that it’s about to start. As a technical analyst since 1997 having lost a fortune and making a fortune from bull and bear markets I have a good understanding of how to best attack the market during its various stages.

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 – most traders/investors have simply not been looking for it.

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. Join Now and Get a 1oz Silver Round or Gold Bar Shipped To You Free.

I can tell you that huge moves are about to start unfolding not only in currencies, 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. 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.

I’M GIVING AWAY – FREE GOLD & SILVER WITH MEMBERSHIPS

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

Platinum Setting Up For A Big Price Anomaly

Our clients and followers have been following our incredible research and market calls regarding Gold and Silver with intense focus.  We issued a research post in October 2018 that suggested Gold would rocket higher from a base level below $1300 to an initial target near $1450 almost 9 months ago.

As of this week, Gold has reached a high of $1442.90 only $7.10 away from our predicted target level.  This has been an absolutely incredible move in Gold and we could not be more pleased with the outcome for our clients, followers, and anyone paying attention to our research posts.

Additionally, many of our clients have been asking us to share our predictive modeling research for Platinum, which has been basing near recent lows recently.  We decided to share our research with everyone regarding the information our proprietary predictive modeling tools are suggesting.

You can see from my precious metals comparison article which metal has the most upside potential looking going forward.

Also, be sure you read my exclusive Platinum prediction which is playing out exactly as expected thus far.

Todays Updated Platinum Analysis:
This first Platinum chart highlights our Fibonacci price modeling tool and provides some critical information we need to understand about Platinum right now.  The Volatility Zone, created by the range between the Bullish and Bearish Fibonacci Trigger Levels, is very large.  This is a very clear indication that implied volatility in Platinum is currently at levels near 26% of the current price.  To put that into perspective, an impulse move in Platinum could result in a $125 to $250 price breakout or breakdown, depending on price structure, before implied volatility may reduce back to normal levels.  Normal price volatility in Platinum is typically somewhere between 4.6% to 11.5%.

The next aspect of our research we want you to focus on is the rotation of the price peaks and troughs, highlighted by MAGENTA arcs we’ve drawn on this chart.  The rotation of price over the past 11+ months has been a very clear “higher price trend channel” where higher highs and higher lows have been forming.

This presents a very clear price picture for the current price levels, near the recent price lows ($765), are very likely to attempt a rally back towards levels that will attempt to set up another “new price high” – $925 or higher.  Although, we have to be very cautious of the extended volatility levels and the potential for a price breakdown into the BREAKDOWN ZONE (highlighted on the chart below).  Should price fail to attempt to move higher, then a very clear price breakdown will take, breaking the current trend channel and invalidating our bullish price predictions.

Currently, our researchers believe there is a very strong likelihood of an upside price move breaching the $818 level (highlighted by the WHITE LINE near the BLUE Fibonacci projection level) to begin the upside price move.  Once this level is breached, we would have technical confirmation that a key Fibonacci level has been tested, breached and a new upside price trend is beginning to form.  This would partially validate our upside price expectations and allow us to target a long objective near $865.

Obviously, technical traders would attempt to look for strategic entries below $805, if they present themselves.  The concept is to take advantage of the lowest risk trade entries the markets provide.  At the same time, there is plenty of room in the middle of this trade for decent profits as well.

This next chart shows our Adaptive Dynamic Learning (ADL) predictive modeling system that maps out price bars, technical data, and comparative price data into a DNA chain for future reference.  In a way, this tool attempts to “infer knowledge” by digging deeper into the price and technical data than we can attempt to do visually – then project the expected price levels well into the future.

This ADL chart is presenting two very clear outcomes.  One with much higher prices and another with lower/stagnant pricing levels that tend to weaken over time.  This result is the output of two different, side-by-side, price bars and it shows how the ADL can highlight increased volatility and what we call a “price anomaly” pattern that is setting up.

Obviously, the current price is near these lower ADL predicted levels, thus we could assume the lower predicted levels may be more accurate.  Yet, both of the ADL bars predicted that price would move lower (below $840) throughout this time-span.  Where the ADL predictions diverge is THIS WEEK and into the future.  The analysis from April 29 is suggesting that the price of Platinum should be trading near $845 right now and will breakout to much higher levels (above $930) within the next 1 to 3+ weeks.  The analysis from May 6 is suggesting that the price of Platinum will languish near $760 to $800 for the next 5+ weeks while continuing to weaken.

This is the setup of a “Price Anomaly”.  Where price is actually “out of alignment” with one key element of the ADL predictive modeling system and setting up an incredible opportunity for skilled traders. We’ve learned that either one of two things will happen…  Either price WILL revert to much higher levels as suggested by the April 29 ADL prediction OR, the price will stall near recent lows as suggested by the May 6 ADL prediction.

As a skilled trader, our job is to understand where the opportunity lies within this ADL prediction and attempt to manage the risks.

As we stated earlier in this research post, the combination of the Fibonacci and ADL predictive modeling systems are suggesting a very clear action for traders – attempt to accumulate below $800 with the expectation that price may continue to consolidate near these levels for 3 to 10+ more days.  Eventually, as our ADL predictive modeling system is suggesting, a breakout upside price move is likely to take place where the price will attempt to move dramatically higher – targeting $850 first, then possibly $935 or higher.  This is the “price anomaly reversion” trade that creates the opportunity for skilled traders.

The ADL predictive modeling system is great at suggesting where the price will attempt to target in the near future.  When it aligns with the current price, then we have some validation that price is acting normally.  When price moves against the suggestions of the ADL predictive modeling system, then we have a “price anomaly setup” and we typically wait for confirmation of the “trigger” to confirm this reversion will actually take place.  Our trigger is the WHITE LINE on the Fibonacci chart, above.  Once price closes above $818 to $820 on a fairly strong move, then we would have technical confirmation that price is attempting to establish “new price highs” and this should provide enough momentum to push the price anomaly reversion trade into a real opportunity for success.

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 set of 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 super cycles 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