Best of the Week
Most Popular
1. Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - P_Radomski_CFA
2.Fed Balance Sheet QE4EVER - Stock Market Trend Forecast Analysis - Nadeem_Walayat
3.UK House Prices, Immigration, and Population Growth Mega Trend Forecast - Part1 - Nadeem_Walayat
4.Gold and Silver Precious Metals Pot Pourri - Rambus_Chartology
5.The Exponential Stocks Bull Market - Nadeem_Walayat
6.Yield Curve Inversion and the Stock Market 2019 - Nadeem_Walayat
7.America's 30 Blocks of Holes - James_Quinn
8.US Presidential Cycle and Stock Market Trend 2019 - Nadeem_Walayat
9.Dear Stocks Bull Market: Happy 10 Year Anniversary! - Troy_Bombardia
10.Britain's Demographic Time Bomb Has Gone Off! - Nadeem_Walayat
Last 7 days
Can We Lock Up Rachel Maddow Now? - 25th Mar 19
Real US National Debt Might Be $230 Trillion - 25th Mar 19
Friday's Stock Market Sell-Off - New Downtrend or Just Correction? - 25th Mar 19
20 Days Left to Find Buying Opportunities In Gold - 25th Mar 19
Will the Historic Imbalance in Gold Stocks to Gold Price Resolve ? - 25th Mar 19
EasySMX Wireless Games Controllers Review - 25th Mar 19
Stock Market Short-term Top - 25th Mar 19
UK Population Growth - Latest ONS Immigration Statistics and Consequences - 24th Mar 19
The Fed Follows Trump's Tweets, And Does The Right Thing - 24th Mar 19
Yield Curves, 2yr Yield, SPX Stocks and a Crack Up Boom? - 24th Mar 19
Risk/Reward in Silver Favors Buying Now, Not Waiting for Big Moves - 23rd Mar 19
Similarities Between Stock Market Today and Previous Bull Market Tops - 23rd Mar 19
Stock Market DOW Seasonal Trend Analysis - 23rd Mar 19
US Dollar Breakdown on Fed Was Much Worse Than It Looks - 23rd Mar 19
Gold Mid-Tier GDXJ Stocks Fundamentals - 23rd Mar 19
Which Currency Pairs Stand to Benefit from Prevailing Risk Aversion? - 23rd Mar 19
If You Get These 3 Things Right, You’ll Never Have to Worry About Money - 22nd Mar 19
March 2019 Cryptocurrency Technical Analysis - 22nd Mar 19
Turkey Tourist Fakes Market Bargains Haggling Top Tips - 22nd Mar 19
Next Recession: Finding A 48% Yield Amid The Ruins - 22nd Mar 19
Your Future Stock Returns Might Unpleasantly Surprise You - 22nd Mar 19
Fed Acknowledges “Recession Risks”. Run for the Hills! - 22nd Mar 19
Will Bridging Loans Grow in Demand and Usage in 2019? - 22nd Mar 19
Does Fed Know Something Gold Investors Do Not Know? - 21st Mar 19
Gold …Some Confirmations to Watch For - 21st Mar 19
UKIP No Longer About BrExit, Becomes BNP 2.0, Muslim Hate Party - 21st Mar 19
A Message to the Gold Bulls: Relying on the CoT Gives You A False Sense of Security - 20th Mar 19
The Secret to Funding a Green New Deal - 20th Mar 19
Vietnam, Part I: Colonialism and National Liberation - 20th Mar 19
Will the Fed Cut its Interest Rate Forecast, Pushing Gold Higher? - 20th Mar 19
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

What’s Happening With Gold?

Commodities / Gold and Silver 2016 Sep 21, 2016 - 10:34 AM GMT

By: Bob_Loukas

Commodities

Robert Alexander writes: GOLD WEEKLY :  Using cycle timing, we should be close to a low for GOLD, but I am expecting an ICL.  An ICL is a quick sharp sell off into a low, and then a move higher.  It shakes out the bulls. I have pointed out Prior ICL’s  on the chart below, and you can see that they come roughly 4-5 months apart lately. We are 4 months from the ICL at the end of May, and I have been calling for a Deep Meaningful Trade-able LOW at the end of September / early October for several weeks.


Here I am pointing out the 1 week deep candle in May that came out of nowhere.  Couldn’t we get that on a Fed Week?  I drew that one in September in as an idea of what we might see this week. I am trying to be patient.

GOLD DAILY –  I’m being asked if Gold can put in a short daily cycle here, near day 14 or 16 or so.  Yes, anything can happen, but I have to report what is more likely to happen. I am being patient, because we are on day 11, and that is definitely early in the daily cycle.  An ICL would also be a deeper drop. Since Golds daily cycles can be continue for 0ver 20+days until a swing low arrives, I want to wait for that swing low. The FED MTG could cause a sell off depending on what J. Yellen says.  Rate hike or no rate hike may not be the trigger, it may be what she says.

SILVER – I posted this in the premium reports chat section Monday morning.  Has Silver bottomed ahead of Gold? I am waiting for a deeper sell off in Gold, so it is hard to recommend Silver long, but this does give a low risk entry for experienced traders with a tight stop. NOTE: A steep sharp ICL type sell off could quickly drop Silver to the magenta line, so caution for some is prudent. 

GDX WKLY–  I pointed this out in the weekend report as a possibility. Sentiment is finally at a point where the majority do not want to own Miners again.  This is what happened right around ICL’s.

GDX DAILY – Day 11.  Did we just see an ICL type sell off in Miners with that big sell off into September? It does look like it in a way, but it is still unusually early timing-wise for an ICL, so I advice caution & patience.  So far, it is lingering at the lows.  It is a lower risk entry here, but if you enter a position here, there is also a risk that the FED MTG Wednesday would break the lows and shake you out in a sell off.

Over a week ago on Sept 9th, I pointed out that the bounce that we were seeing would likely roll over like this and not continue higher.  That is what we are seeing so far. Some wrote to me and mentioned that the sell off in August seemed deep enough.  So could we really drop again?

A week ago, I also used these examples in the HUI (2010 & 2011) of a deep drop, a bounce, and a 2nd deep drop into an ICL as a visual example.  With the Fed Mtg Wednesday, Cycle timing a bit early for that deep meaningful ICL, and evidence that the HUI has dropped in more of an ‘a-b-c’  type wave down  in the past, I just want to admonish patience for those who cannot endure drawdown.

SIDENOTE: GDX – We do have a gap below price currently, and if we sell off into an ICL here, it could get filled.  I have been calling for a drop to $22 – $25 for many weeks now. One more quick fed sell off would do the trick. THIS IS ACTUALLY setting up to be a BULLISH looking chart right now , with divergence & a falling wedge pattern. A buying opportunity is near, even if we get a big drop.

So a common question that seems to come up lately is, “Can I take a position here and just ride out the wiggles?”  If we drop to an ICL and it is only GDX $22, that is possible if you are experienced, but I find that many CANNOT stand to watch their account values drop for even 1 day or 2.  That is why I recommend patience as we head into a Fed Meeting, and waiting for a swing low.  Could that  recent sell off be THE ICL in Miners, and the Fed Mtg blasts miners higher?  I never say never, and if so, we could always take positions then, but it is less likely timing-wise. Gold did not sell off nearly as much, and if Gold sells off inot an ICL, I would think that Miners will at least double bottom or undercut the lows. I do expect another strong  move higher soon enough.

That said, here is something that I find encouraging –  Some Miners are back up near their highs, and I found that interesting with that deep sell off in August. Notice GORO. This is what Miners can do.  In 3 quick days in early September, GORO took back 3 weeks of selling off.

And RIC looks pretty good since the August sell off and rebound.  It ran from $8 to $11 and shows positive divergences. It now has another reversal and attempts to regain the 50sma. SO SOME MINERS may have bottomed and they may not break their current lows. Again, 3 quick days took back 3 weeks of sell off.

SENTIMENT is in the dump when it comes to precious metals, and that is what we want to see at an ICL. Some Miners still exhibit weakness or lack of real follow through, but as we see with GORO and RIC and a few others, some Miners are possibly being accumulated.  Recovery can be very quick after the selling dries up.

If you want to track the precious Metals market along with us here at Chartfreak,  why not sign up for a 1 month or quarterly subscription? When the lows are in, I believe that you will easily make your money back with a few well timed trades. See the ‘sign up’ tab at the top of this page if interested. Thanks for reading along.

Chart Freak Premium

Chart Freak members receive up to 5 premium reports per week covering a wide array of markets, as this public post illustrates.  Come and join the ChartFreak community as we trade the new Gold Bull Market and various trending sectors.

https://www.chartfreak.com/my-secrets/

By Robert Alexander,

https://www.chartfreak.com

My name is Robert Alexander, but I’m probably better known as ‘Alex’ in trading forums.  I’ve been a full time trader for well over a decade and began trading in the late 1990s while working in management and sales at a well-known aerospace company. As my style evolved, so did my success, and it allowed me to leave corporate America to pursue my passion and trade full time.

© 2016 Copyright Robert Alexander- All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules