Best of the Week
Most Popular
1. Will Iran Kill the PetroDollar? - Marin Katusa
2. Tail Events, Isolation, New Normal Of Hyper Monetary Inflation - Jim_Willie_CB
3. Kodak's Former Moment, A Lesson for You, Me and America - Gary_North
4.The Five Stages of Collapse and the Coming Paradigm Shift in Silver - Steve_St_Angelo
5. UK Recession 2012 Certain as Bank of England Prepares to Ramp Up Money Printing Presses - Nadeem_Walayat
6. HMRC Extends Tax Deadline by 2Days for Self Assessment Online Filing - Nadeem_Walayat
7. Gold GLD ETF Investors Mass Exodus - Zeal_LLC
8. Credit Crisis Perfect Storm, Robert Prechter Discusses What's Backing Your Dollars - Robert Prechter
9. Best Cash ISA 2012 to Reduce Stealth Inflation Theft of Value of Savings - Nadeem_Walayat
10.Financial Markets 2012, When Leverage Fails - Ty_Andros
Last 5 Days Analysis
The Next Big Asian Emerging Market - 9th Feb 12
Different Measures of U.S. Unemployment, but Consistent Story is Visible - 9th Feb 12
The Fed's Quasi-Fiscal Policies - 9th Feb 12
Will Currency Devaluation Fix the Eurozone? - 9th Feb 12
What If Iran Closed The Straits Of Hormuz? - 9th Feb 12
Gold Will Advance to $2,500 If Euro Zone Breaks Up - 9th Feb 12
Ben Bernanke is Every Gold Bug's Best Friend - 9th Feb 12
Apple Stock Heading Over $600 on iTV and iPad3 - 9th Feb 12
Money Market Funds Are in the Fight of Their Lives - 9th Feb 12
China's Economic Rebalancing Should Be Good for Gold Demand - 9th Feb 12
Waiting to Pounce on Gold and Silver Profits - 9th Feb 12
Learn How to Apply Fibonacci Retracements to Your Stock Index Trading - 8th Feb 12
Do Low Interest Rates Power Stock Markets Higher? - 8th Feb 12
SILVER: The Illegitimate Child Of The Commodities Family - 8th Feb 12
A New Reason Gold Stocks Will Soar - 8th Feb 12
The Deception of 0% Interest Rates, High Costs and Capital Destruction - 8th Feb 12
Bring Down the New World Order with Free Market Education - 8th Feb 12
Gold Increases In Value During Inflation or Deflation Scenarios - 8th Feb 12
Gold Holds Steady as U.S. Dollar Hits 2-Month Low - 8th Feb 12
Markets Risk Train Chugs Along, Overbought Does Not Mean a Correction is Coming - 8th Feb 12
Banking, U.S. Housing Market and Mortgages - 8th Feb 12
Has Zero Interest Rate Policy Held Back Economic Recovery? - 8th Feb 12
Graphite and Rare Earth Metals for the 21st Century - 8th Feb 12
Gold Odysseus Journey Continues! - 8th Feb 12
The Fed Resumes Printing Money to Monetize U.S. Government Debt - 7th Feb 12
Timing the Market: Predicting When the FED Will Act Next (Feb 12) - 7th Feb 12
U.S. War With Iran? - 7th Feb 12
Abandoning the U.S. Dollar for Gold - 7th Feb 12
Financial Crisis American Gridlock, Why The “Left” And The “Right” Are Both Wrong - 7th Feb 12
The Fed is Engineering Barack Obama’s Re-Election Campaign - 7th Feb 12
Finding Fundamentals Key to Gold Stocks Investing - 7th Feb 12
US Debt Will Explode Without Changes - 7th Feb 12
Gold Compared to Past Bubbles - 7th Feb 12
Illusion Of Economic Recovery – Feelings & Facts - 7th Feb 12
In the Gold Bullring - 7th Feb 12
This Precious Metal Could Rise 125% Over the Next 10 Months - 6th Feb 12
Washington Heading for War on Syria - 6th Feb 12
Gold "Rollercoaster" Heads Yet Lower as Greece Hits "Crunch Time for Bankruptcy" - 6th Feb 12
Did Friday's Gold Price Action Signal a Stock Market Top? - 6th Feb 12
Monday Financial Markets Madness – What’s This Greece Thing? - 6th Feb 12
Stock Market Investors Dangerous Times Ahead, Will Impact Gold - 6th Feb 12
Gold, Stocks and Euro Fall As Possible Greek Debt Default Looms - 6th Feb 12
Bond Investors Pour into Emerging Market Debt in Hunt for Higher Yields - 6th Feb 12
New Spy Technology Could Be Worth Billions - 6th Feb 12
U.S. Fraudulent Election Year Unemployment Data, Lies, Lies, More and Bigger Lies - 6th Feb 12
Double Liability for Bank Shareholders, Officers and Directors - 6th Feb 12
Stock Market Next Short-term Top in Sight - 6th Feb 12
U.S. Home Foreclosures and Shadow Banking: Why All the "Robo-signing"? - 5th Feb 12
Look at What 'Worked' in the Great Depression - 5th Feb 12
Putting Good U.S. Employment Numbers in Perspective, College Education Isn’t Enough - 5th Feb 12
Stock Market Weekend Update - 5th Feb 12
The Doomsday Machine - 4th Feb 12
Are US Treasury Bond Markets a Sell? - 4th Feb 12
Obama’s Refinancing Swindle, Banks Want to Dump Millions of Risky Mortgages Onto FHA - 4th Feb 12
The Euro Zone and the Crisis of Sovereign Debt - 4th Feb 12
Is the U.S. 'Decoupling' From the European Debt Crisis? - 4th Feb 12
The Crucial Pillar of the New World Order - 4th Feb 12
Gold Junior Mining Stocks Poised to Rebound - 4th Feb 12
U.S. January Employment Situation Shows Widespread Improvement, but Short of Full Employment Mandate - 4th Feb 12
U.S. Non Farm Payrolls Interesting Market Divergences - 4th Feb 12
Gold and Silver Mining Stocks Tops Might Be Just Around the Corner - 4th Feb 12
Critical Materials for Critical Technologies - 3rd Feb 12
Junior Gold Mining Stock - 3rd Feb 12
SOPA, PIPA, The State of US Surveillance - 3rd Feb 12
Essential Investor Preparations for The Big Crisis - 3rd Feb 12
U.S. Jobs, El-Erian U.S. Structural Issues Aren't Being Dealt With - 3rd Feb 12
What Every U.S. Investor Should Know About Inflation - 3rd Feb 12
Gold Challenges Resistance at $1,750/oz – Technicals and Fundamentals Remain Very Positive - 2nd Feb 12
German Central Bailing Out Europe - 2nd Feb 12
In the Wake of Davos: "Strong Economic Medicine" for the European Union - 2nd Feb 12
The American Economy is "Dead": The Illusion of Economic Recovery - 2nd Feb 12
Irish People Bailout of Bond Holders, Vincent Browne v The European Central Bank Video - 2nd Feb 12

Free Instant Analysis

Free Instant Technical Analysis

Market Oracle FREE Newsletter

How You Can Identify Stock Market Turning Points Using Fibonacci

ETF Commodities Trading Analysis and Forecasts for GLD, SLV and UNG

Commodities / Commodities Trading Nov 16, 2009 - 01:16 AM

By: Chris_Vermeulen

Commodities

Best Financial Markets Analysis ArticleCommodities continue to perform well as the US dollar tests the October lows. If we step back and take a look at the weekly charts of the gold, silver, oil and natural gas ETFs we can get a better feel for what to expect in the coming week.

Trading commodity ETFs can be a very fun and profitable experience when done correctly. The first things I always analyze are the longer time-frame charts. This allows me to see past support and resistance levels and determine whether the investment is trending up, down or sideways.


Let’s take a look at gold, silver, oil and natural gas.

GLD ETF – Weekly Chart
The weekly trend is crucial for understanding the power behind price movements. We can see that the GLD ETF is in a strong up-trend and that price closed at the high on Friday which is a strong sign. I would expect to see gold continue higher on Monday because of this strong momentum.

We can see that over the past 2 years GLD has formed a large cup & handle pattern which is very bullish. A breakout above the handle will trigger investors to buy gold
as a long term investment and that is what we are seeing now.

ETF Trading GLD

GLD ETF – Daily Chart for Trading the Trend
Using GLD as an example, the trend has been up for several months on the weekly chart. So we know buying low and selling high is the proper strategy for this investment. The weekly chart above shows this.

Buy Signal for GLD – Using the daily chart we focus on buying pullbacks when the price is near a support level and reverses back up.

Profit Taking – I am not a greedy trader so I take profits after a nice run in prices. For GLD a nice short term run is 2-5%. So once I reach that level I start tightening my stops and trend lines to lock in some gains. I do this by selling part of my positions – generally between 25-50%. I let the balance of the position run with the market providing more wiggle room for GLD to mature.

GLD ETF Pivot Low

SLV ETF – Weekly Chart
SLV has yet to breakout above the 2008 high. But the chart is still very strong. If we see the price move above the $17.50 level I expect buyers are going to jump in and push prices up to the $20 level.

SLV ETF Trading

USO Fund – Weekly Chart
The USO fund continues to look bullish as it consolidates the breakout with volume getting lighter. We could see a bounce this week and if we do I will be watching for a low risk entry setup.

Oil ETF Trading

UNG Fund – Weekly Chart
UNG continues to trend down and under perform the market. The last time UNG dropped to this level we had a nice bounce generating a 30% move in 3 weeks. But I don’t think that will happen this time. The price has been sliding lower slowly on light volume. This type of price action is not as predictable when compared to others. I will wait for a proper setup before buying an oversold bounce or shorting after a bounce.

Gas ETF Trading

Commodity ETF Trading Conclusion:
The weekly charts don’t lie. Trade with the underlying weekly trend and you will put the odds in your favor. I use the daily chart and 30 minute intraday charts for timing my trades as those time frames have proven to be very accurate with commodity ETF investments.

WE continue to be hold our golden rocket stocks and GLD fund. If the market co-operates this week we could get some trading signals for both Canadian and US ETF funds.

If you would like to receive my Free Weekly Trading Reports like this please visit my website: www.TheGoldAndOilGuy.com

To Your Financial Success,

By Chris Vermeulen
Chris@TheGoldAndOilGuy.com

Please visit my website for more information. http://www.TheGoldAndOilGuy.com

Chris Vermeulen is Founder of the popular trading site TheGoldAndOilGuy.com.  There he shares his highly successful, low-risk trading method.  For 6 years Chris has been a leader in teaching others to skillfully trade in gold, oil, and silver in both bull and bear markets.  Subscribers to his service depend on Chris' uniquely consistent investment opportunities that carry exceptionally low risk and high return.

This article is intended solely for information purposes. The opinions are those of the author only. Please conduct further research and consult your financial advisor before making any investment/trading decision. No responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis.  

Chris Vermeulen Archive

© 2005-2012 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Sara
16 Nov 09, 08:39 		Trading

variation in trading occurs when silver , bronze cross be gold . I think market now a days not on track due to crisis in all over the world .



Post Comment (Moderated)




Commenting Issue - If on submitting you are returned to the main Index Page (50% chance) then your comment has not been accepted, Follow below steps for 95% chance of comment being accepted.

  1. Click your browser Back button (from main index page).
  2. COPY your comment text from Comment box (i.e. copy to clipboard).
  3. Press PAGE Refresh - You should see the message "You are not authorized to carry out this operation"
  4. Paste your comment back into the comment text box.
  5. Click Submit - If everything goes okay you will remain on the article page with the message "Your comment was held for moderation and will be reviewed shortly".
  6. If instead you are again returned to the main index page then repeat 1-5, alternatively EMAIL to comments @ marketoracle.co.uk quoting the article number.

FREE Deflation Survival GuideFREE Updated 118 Page Independant Investor E-book