Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Risks to Global Economy is Balanced: Stock Market upside limited short term - 20th Jan 20
How Digital Technology is Changing the Sports Betting Industry - 20th Jan 20
Is CEOs Reputation Management Essential? All You Must Know - 20th Jan 20
APPLE (AAPL) AI Tech Stocks Investing 2020 - 20th Jan 20
FOMO or FOPA or Au? - 20th Jan 20
Stock Market SP500 Kitchin Cycle Review - 20th Jan 20
Why Intel i7-4790k Devils Canyon CPU is STILL GOOD in 2020! - 20th Jan 20
Stock Market Final Thrust Review - 19th Jan 20
Gold Trade Usage & Price Effect - 19th Jan 20
Stock Market Trend Forecast 2020 - Trend Analysis - Video - 19th Jan 20
Stock Trade-of-the-Week: Dorchester Minerals (DMLP) - 19th Jan 20
INTEL (INTC) Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 18th Jan 20
Gold Stocks Wavering - 18th Jan 20
Best Amazon iPhone Case Fits 6s, 7, 8 by Toovren Review - 18th Jan 20
1. GOOGLE (Alphabet) - Primary AI Tech Stock For Investing 2020 - 17th Jan 20
ERY Energy Bear Continues Basing Setup – Breakout Expected Near January 24th - 17th Jan 20
What Expiring Stock and Commodity Market Bubbles Look Like - 17th Jan 20
Platinum Breaks $1000 On Big Rally - What's Next Forecast - 17th Jan 20
Precious Metals Set to Keep Powering Ahead - 17th Jan 20
Stock Market and the US Presidential Election Cycle  - 16th Jan 20
Shifting Undercurrents In The US Stock Market - 16th Jan 20
America 2020 – YEAR OF LIVING DANGEROUSLY (PART TWO) - 16th Jan 20
Yes, China Is a Currency Manipulator – And the U.S. Banking System Is a Metals Manipulator - 16th Jan 20
MICROSOFT Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 15th Jan 20
Silver Traders Big Trend Analysis – Part II - 15th Jan 20
Silver Short-Term Pullback Before Acceleration Higher - 15th Jan 20
Gold Overall Outlook Is 'Strongly Bullish' - 15th Jan 20
AMD is Killing Intel - Best CPU's For 2020! Ryzen 3900x, 3950x, 3960x Budget, to High End Systems - 15th Jan 20
The Importance Of Keeping Invoices Up To Date - 15th Jan 20
Stock Market Elliott Wave Analysis 2020 - 14th Jan 20
Walmart Has Made a Genius Move to Beat Amazon - 14th Jan 20
Deep State 2020 – A Year Of Living Dangerously! - 14th Jan 20
The End of College Is Near - 14th Jan 20
AI Stocks Investing 2020 to Profit from the Machine Intelligence Mega-trend - Video - 14th Jan 20
Stock Market Final Thrust - 14th Jan 20
British Pound GBP Trend Forecast Review - 13th Jan 20
Trumpism Stock Market and the crisis in American social equality - 13th Jan 20
Silver Investors Big Trend Analysis for – Part I - 13th Jan 20
Craig Hemke Gold & Silver 2020 Prediction, Slams Biased Gold Naysayers - 13th Jan 20
AMAZON Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 11th Jan 20
Gold Price Reacting to Global Flash Points - 11th Jan 20
Land Rover Discovery Sport 2020 - What You Need to Know Before Buying - 11th Jan 20
Gold Buying Precarious - 11th Jan 20
The Crazy Stock Market Train to Bull Eternity - 11th Jan 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

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