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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.

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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

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Chris Vermeulen on Gold, Silver, Miners, Crude Oil, Bonds, and Bitcoin.


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 have had a series of great trades this month. In fact, over the past 20 months, my trading newsletter portfolio has generated over 100% return when compounded for members and most importantly we did this with very little portfolio risk. And we locking in more profits on Tuesday with the Russell 2000 index. So, if you believe in technical analysis, then this is the newsletter and market condition for you to really shine.

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.

FREE GOLD OR SILVER WITH SUBSCRIPTION – OFFER ENDS SOON!

Chris Vermeulen – www.TheTechnicalTraders.com

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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

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PART II – Silver, Transports, and Dow Jones Index At Targets – What Direct Next?

As you can probably imagine, we’ve received a ton of emails and questions about our recent predictions for precious metals and the August 19 breakdown date in the global markets.  It seems everyone is reading our research posts and is curious about how to prepare for these moves and how we came up with these predictions months in advance.  In this second part of our metals & Aug 19 update post, we’ll try to highlight our expectations going into the weekend prior to the Aug 19 breakdown date (Monday).

In the first part of this research post, we highlighted what we believe is the imminent completion of the MID Leg 1 upside move in precious metals.  Our research continues to suggest that we are still setting up a major LEG 1 upside move which should be considered a larger Elliot Wave structure.  Within this Wave (Leg) 1 formation, a typical 5 wave structure is likely to continue forming.  Currently, we are creating the Wave 3 of the total of 5 waves that will complete a finished upside Wave (Leg 1).

If our analysis is correct, the peak that ends Wave 1 could be well above $2000 for Gold and well above $24 to $28 for Silver.  Then, of course, we’ll set up for a corrective Wave #2 before another, BIGGER, upside wave #3 sets up in precious metals.

Taking a look at this Weekly Silver chart, you may be able to see the waves as we see them.

_  The upside price move from Dec 14, 2015, to July 4, 2016 sets up the initial upside Wave 1 leg.

_  The low in November 2018 sets up the end of corrective wave B from the initial bottom on December 14, 2015.

_  This setup suggests we are currently starting a Wave 3 upside move which is usually 1.5x larger (or more) than Wave 1.

_  Keep in mind that we believe all of these “minor wave” formations are part of a much larger 5 wave structure that is setting up.

As you look at the Fibonacci diagram, above, remember that within each of those waves (1 through 5), a typical complex price wave formation (1, 3, 5, or other more complex wave formation) will set up to complete the broader wave formation.  Therefore, as you review the chart below, keep in mind that we believe everything originating from the bottom on December 14, 2015, till now is still part of the WAVE 1 formation on that Elliot Wave chart.  We are just getting started with this move, folks.

Silver Weekly Chart with Wave 1

The YELLOW arrows we’ve drawn on this Silver chart are our expectations for Silver over the next 6+ weeks and will potentially complete the initial upside minor wave 3 formation/ Leg 1.  We do understand that Elliot Wave counting can be difficult to understand, but please allow use to preface this research by suggesting that every larger wave consists of smaller waves.  And those smaller waves, consist of sets of even smaller waves.  And so it continues all the way down to sub-one-minute charts. The point we’re trying to make is that the $21 endpoint on this chart is very likely just the end of Wave 1, subwave 3, impulse move C which may target a total of D moves before reaching the end of subwave 3.  To put it in more simple terms, we are only about 20% into this upside move right now based on our expectations.

Why is the move in precious metals so important for our August 19 breakdown date prediction?  Because we would expect precious metals to begin a massive price rally if the global stock markets were expecting some type of major downside rotational event.  A more into metals is a safety play for global investors.  If something is happening in the markets and fear becomes more evident, then precious metals should start to rally.  This sets up an expectation that some type of price revaluation event is likely to take place in the near future.

Thus, the upside price moves in Gold and Silver align perfectly with our August 19 breakdown expectation.  The key to this, in our opinion, is that Silver has really started to skyrocket on large volume.  This creates “confluence” in the metals group that fear is now driving investors into the lesser Silver market in preparation for a price reversion move soon.

Weekly Transportation Index chart

This Transportation Index chart highlights the fact that investors believe the future 3 to 6 months in the global economy will be moderately slower and that transportation activity and revenues will likely continue to diminish.  The Transportation Index is an excellent measure of future global economic expectations that can be used as a “general market indicator” for future expectations.

Dow Jones Weekly Chart

This YM Weekly chart highlights the key Fibonacci price trigger level that has setup near $26,170.  This is the critical price level for the YM to actually generate a confirmed Bearish price trend (end of week closing bar price level) which may be the initial downside price trigger.  As of the creation of this chart, the YM price was above this Fibonacci trigger level.  But as of right now, the YM price is already below the Fibonacci trigger level and if the YM closes the week below this level, then we would have a new confirmed Bearish Fibonacci price trend.

CONCLUDING THOUGHTS:

The interesting fact behind all of this is that these predictions were made by our research team months before today.  Our Gold prediction was initiated near October 5, 2018.  Our August 19 breakdown date was initiated near May 2019 (originally as a July Topping pattern expectation and later revised to the August 19 breakdown date).  All of these predictions were created using our proprietary price modeling, predictive analysis tools, and advanced cycle analysis tools.

We find it absolutely incredible that we are able to make these types of predictions many months into the future and watch the markets do exactly what we suggested would happen.  Obviously, we hope you are finding value in our research posts and modeling systems as well?

If you have not already prepared for the August 19 breakdown date prediction, we would suggest that you consider how you would want to protect any open long positions at this time (headed into the weekend) and set up your portfolio for a broader market rotation and upside move in precious metals over the next 3+ months.  It is not too late to take action to protect your assets – even weeks past August 19, you can still act to take advantage of these bigger price moves.  We are simply urging you to plan and prepare for these moves as you read our research posts.

FORECASTED MOVES FOR GOLD, SILVER, MINERS, AND STOCK INDEXES

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 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.

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.

JOIN ME AND TRADE WITH A PROVEN STRATEGY TODAY!

Chris Vermeulen
www.TheTechnicalTraders.com

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Part II – Metals and VIX Are About To Pull A “Crazy Ivan”

In the first part of this multi-part research post, we highlighted what we are calling a Crazy Ivan price event (borrowed from the movie Red October – (source).  The one thing we want you to take away from this article is that August 19, 2019, should be a major price inflection date where the price is very likely to begin a new downside price trend in the US and global stock markets.  This will likely push commodity prices to extremes and may very well push Gold and Silver into the stratosphere as fear and greed take hold across the planet.

Part I we highlighted how the VIX and the NQ are set up to react to this Crazy Ivan pricing event and how we believe many traders/investors are simply unaware of the potential for this type of large reversion price move.  We want to be clear, we believe the US markets will be somewhat immune from extended downside risks.  This does not mean there won’t be a downside price move and this does not mean that the markets won’t experience the Crazy Ivan reversion trend.  It will likely happen just as we are expecting, yet we believe the US stock markets will quickly recover from this move – like it has done many times in the past.

Our research that highlighted this August 19, 2019 date and the potential for what we are calling the Crazy Ivan price move is rooted in our super-cycle analysis, predictive modeling tools, and other specialized proprietary price modeling solutions and utilities.  We believe we’ve identified a key inflection point/date that will start what we are calling a “breakdown move” which will lead to the Crazy Ivan event throughout the globe.  As we stated in the first part of this article – we don’t know the exact composition of this event yet, but we do know that is should begin to happen near or after August 19, 2019.

Now, let’s get busy digging into the Gold and Silver charts for all our followers.

Gold 2-Week Chart Interval

This first Gold 2-Week chart highlights our Fibonacci price modeling tool and helps to show us where the price is targeting for the initial upside move from the April 21~24 Momentum Base pattern that we called back in January 2019.  We believe the current breakout upside price move will initially target the  $1597 level before briefly stalling, then rallying further to target the $1785 level or higher.

We believe the Crazy Ivan event could push Gold much higher than our projected levels under certain circumstances:

A. The US Dollar weakens throughout the initial process of the Crazy Ivan event

B.  Cryptos collapse as governments clamp down on rogue exchanges/currencies

C.  Massive credit and debt issues arise in China, Asia or the EU that threaten future economic output and operations

D.  Some type of crisis event unfolds where global investors believe war or conflict is imminent. (think Hong Kong, North Korea or somewhere in that general vicinity).

Without these additional impetuses in the metals market, we believe the price will follow our Crazy Ivan expectations (YELLOW LINES, below) fairly closely over the next 30 to 60+ days.

Silver Daily Chart Interval

Silver, on the other hand, is set up to break substantially higher based on the upside move we expect in Gold and the possibility that the Gold/Silver ratio will continue to contract to lower levels.  Recently, the Gold/Silver ratio fell from approximately 93 to 86.  This move relates the total number of ounces of Silver one must buy to equal the price of one ounce of Gold.  Currently, this level is back up to 89.5 as Gold has rallied faster than Silver has rallied.

But what happens when traders catch onto the fact that Gold and Silver will rally as this Crazy Ivan event takes place and that Silver is the true undervalued metal across the planet?  At the peak of Gold/Silver prices near April 2011, the Gold/Silver ratio was resting near 32 (yes you read that properly).  What would that look like on the Silver chart, below, if Gold continued to rally to levels above $2000?  It is really simple to find out.

$2000 (Gold per ounce) / 32 = $62.50 per ounce for Silver

What if Gold rallied a full 100% Fibonacci measured move from the previous 1999-2011 rally?  That peak level would be $2700 in Gold and the calculation is still simple.

$2700 (estimate Gold peak) / 32 = $84.375 per ounce for Silver.

Could it happen like this?  Yes, in theory, and reality it really could happen that Gold rallies to a level that equals a full 100% Fibonacci price extension and the ratio level falls to levels near 32.  If that were to happen, then these calculations would be accurate.

This is why we believe the Crazy Ivan event will become the catalyst for some really incredible trading opportunities and big price swings over the next 6 to 13+ months.

CONCLUDING THOUGHTS:

Our $21 upside price target in Silver is really muted compared to our long term price projections.  Yet everything hinges on this August 19, 2019 breakdown cycle date and what happens after that.  Our research suggests this current downside price move may have been a volatility explosion related to the lack of liquidity in the global markets and to hint that the markets are capable of being far more irrational for far longer than anyone expects.

We are only 9 days into August and we have already closed out 24.16% in gains from the falling SP500 using SDS, and the pop in gold using UGLD, and from the oversold bounce and rally in silver miners SIL.

We urge all of our followers to pay attention to our research, consider your options very closely and prepare for this next move by pulling some of your active portfolio away from risks and into more protective measures.  This Crazy Ivan event is just 10 days away and we really want to urge all of our followers to not under-estimate this event cycle.

WARNING SIGNS ABOUT 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.

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.

FREE GOLD OR SILVER WITH MEMBERSHIP!

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Chris Vermeulen

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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 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

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Silver Price Target during the Next Bull Market

It is time to explore the details of our Gold vs. Silver ratio research and to start to understand the potential for profits within this move in precious metals.  The first part of our research article highlighted the Gold vs. Silver ratio and why we believe the “reversion process” that is taking place in price could be an incredible opportunity for traders.

Historically, when the Gold vs. Silver ratio reaches an extreme level, and precious metals begin to rally, a reversion within the ratio takes place, which represents a revaluation process for silver prices compared to gold prices.  This typically means that the prices of Silver will accelerate to the upside as the price of gold moves higher – resulting in a decrease in the ratio level.

This reversion process related to precious metals pricing is an opportunity for traders to take advantage of an increased pricing advantage to generate profits.

For every drop of 5.0 points in the gold/silver ratio, the price of Silver should increase by 6.5% to 7.5% to the price of Gold.

This research is based on our belief that Gold and Silver will continue to rally and potentially enter a parabolic upside price advance soon.  If this takes place and precious metals begin to skyrocket higher, the ratio level will react in a hyperactive “reversion process” where Silver may move higher at a rate that is substantially faster than Gold.  This is the process that we are exploring and our researchers are attempting to shed some insight into this event.

I believe a reversion process has already begun to take place within the precious metals market.  We believe this reversion process is about to explode as a dramatic revaluation event unfolds over the next 12+ months.  This process will become more evident to traders as the price of Gold continues to rally towards the $1750+ level and as the price of Silver explodes higher in larger and larger advances.

Gold/Silver/US Dollar ratio chart

This Gold/Silver/US Dollar ratio chart is the basis of our analysis for the reversion process event and the associated revaluation event.  Our previous analysis suggests Gold will attempt a move to levels above $1650 to $1700 on the next breakout move higher.  This next upside price move will expose the price reversion event for all traders to witness and we have mapped out the expected Silver price advantage for all traders going forward.

Gold/Silver Ratio – Silver Price vs Ratio Level

We put together this reference table to assist all traders in understanding just how important this move could be to them.  This reference table shows the current Gold/Silver price levels (in GREY) as the ratio levels change from 88 to lower levels.

If the price of Gold were to stay at the same $1426 level while Silver rallied to prompt an 82 or 77 ratio level, the price of silver would move from the current price of $16.19 to $17.39 or $18.52 in order to reflect this decreased ratio level.  That represents a 7.5% to 14.3% price increase.

Yet if the price of Gold advances to $1650 or $1750 while the ratio level drops to the 82 or 77 ratio level (because Silver advances fast than Gold), then the price of Silver would move from the current price of $16.19 to $20.12 to $22.73.  That move represents a 24.2% to 40.3% price increase in Silver when Gold increased only 15.7% to 22.7%.

What If Silver Advances Quicker Than Gold?

If Silver advances even faster than our “what if” scenario, above, and Gold continues to advance as we expect, the increased price reversion process taking place in Silver as a process of this revaluation event could result in a 70% to 110% fast price advance in Silver than the price advance that takes place in Gold.

We believe the next upside price leg in Silver will target $19.50 to $22.75.  This target range supports the highlighted area on our Ratio table (below).  In other words, we believe the ratio level will attempt to quickly move toward the 70 to 77 level as Gold prices rally over the next few months.  This would push silver up into the $22.50 to $25 price level very quickly.

What If Gold Rallies Faster Than Silver?

If Gold were to rally above $1950 on an extended upside price advance before August or September, we believe the reversion process would become extremely hyperactive in nature and the price of Silver could push well above $29~34 per ounce – may be even higher.

This declining ratio level acts as a turbo-boost for the price of Silver as Gold continues to advance.  The recent rotation to the downside suggests the ratio relationship between Gold and Silver has already stated a reversion process – the only question is “where will it end?”.  Our researchers believe it will stop where it stops and we believe the 65 level on the Ratio chart is just the initial target for this first upside leg.

Imagine where Silver could go if the ratio level fell to levels below 40 and gold rallied to $2500 or more?  Ok, stop imagining and take a look at this second extended ratio table.

Pay attention to the fact that Silver could rally more than 300% if Gold moves up above $1750 and the Gold/Silver ratio drops below the 55 level.  If Gold were to continue to rally and the Gold/Silver ratio continued to fall, Silver could rally well above $50 over the long run.

Silver Price Range As Gold/Silver Ratio Move To the Average

We’ve attempted to graph the ranges of the expected move in Silver into segments based on the Gold/Silver ratio to assist traders in understanding just how powerful this setup really is.  Imagine what it would take for Gold to move up to levels above $1750 (which is our expected target for the next leg higher) and for Silver to rally into the 55 to 65 ratio level.  If that happens, the expected target price for Silver would be somewhere between $30 and $40 – more than 100% higher than the current price of Silver.

If you think $50 is unimaginable or unrealistic, we’ve just shown you why it is possible these levels could be reached before the end of 2019 or in 2020.  If you have not grasped the reality of what is likely to unfold over the next 6 to 12+ months in the global markets and that precious metals are the setup of the decade, then pay attention to the fact that gold and silver are poised for moves ranging from 40% to 240% over the next 12+ months depending on the scale and scope of this move.

Our current objectives for the ratio levels are still 55 to 65 within this next move higher where Gold will target $1750.  Beyond that level, we’ll have to update you as the price continues to explore new highs.

CONCLUDING THOUGHTS:

In short, don’t miss the trade of the decade. These 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.

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

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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

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