Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Inflation Consequences for the Stock Market, FED Balance Sheet - 24th Oct 21
To Be or Not to Be: How the Evergrande Crisis Can Affect Gold Price - 24th Oct 21
During a Market Mania, "no prudent professional is perceived to add value" - 24th Oct 21
Stock Market S&P500 Rallies Above $4400 – May Attempt To Advance To $4750~$4800 - 24th Oct 21
Inflation and the Crazy Crypto Markets - 23rd Oct 21
Easy PC Upgrades with Motherboard Combos - Overclockers UK Unboxing - MB, Memory and Ryzen 5600x CPU - 23rd Oct 21
Gold Mining Stocks Q3 2021 - 23rd Oct 21
Gold calmly continues cobbling its Handle, Miners lay in wait - 23rd Oct 21
US Economy Has Been in an Economic Depression Since 2008 - 22nd Oct 21
Extreme Ratios Point to Gold and Silver Price Readjustments - 22nd Oct 21
Bitcoin $100K or Ethereum $10K—which happens first? - 22nd Oct 21
This Isn’t Sci-Fi: How AI Is About To Disrupt This $11 Trillion Industry - 22nd Oct 21
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold And Silver Follow Up & Future Predictions For 2020 & 2021 – Part II

Commodities / Gold & Silver 2020 Sep 30, 2020 - 05:59 PM GMT

By: Chris_Vermeulen

Commodities

This second part of our research post on super-cycles and precious metals will present our expectations going forward for 6 to 24+ months.  In Part I of this research post, I linked a number of our previous research articles we recommended to readers to review for context and continuity. If you have not read Part I of this research article, please take a minute to review that first segment before you continue reading this second segment of our research.


TECHNICAL CYCLES & MORE

There is a technical cycle that is taking place as stocks and Gold appreciate.  In the first phase, there is a basing process in both the stock market and Gold (sometimes not happening at the same time).  From this basing level, the stock market begins to rally and Gold begins to appreciate as well.

In the second phase, the stock market rallies to a peak which prompts some degree of selling.  This selling spills over into Gold and Silver; panic selling usually spills over to Gold and Silver immediately, putting price pressure on these precious metals.  In other words, when broad market selling takes place, Gold and Silver are not immune from this panic type of downside price event and suffer accordingly. However, they react differently weeks and months after this type of price correction.

In the final phase, which usually takes place after a deep correction in the US stock market and after some new low price base has set up, the real appreciation for precious metals typically happens in a parabolic price trend.  This is when risks are still perceived to be moderately high throughout the globe, yet the stock market continues to attempt to base/drive higher while Gold and Silver begin a real sharp upside price trend.

Pay attention to how the BASE LEVELS on the following Smart Cash Index to Gold Monthly chart are followed by periods of price appreciation in both the stock market and Gold.  Notice how Gold has rallied in nearly equal (100% Measured Moves) since 2002 – first rallying nearly $750 (2008), then rallying nearly $950 (2011), and recently rallying nearly $950 (2020).   This suggests any continuation of the 100% Measured Move structure would place a new target for Gold near $2,900~3,000.  We believe a new parabolic price trend is setting up after the deep double-bottom BASE LEVEL between 2016~2020.

If our research is correct, the Super-Cycles and the deep rotation BASE LEVELS will likely set up a new base level near $1,800 to $1,950 in Gold and near $145 to $175 on our Smart Cash Index chart (see the chart further below).  We believe this new base level will act as a launchpad for the new parabolic price trend in Gold and Silver throughout 2022~2023 – possibly longer.

Before you continue, be sure to  opt-in to our free-market trend signalsnow so you don’t miss our next special report!

Looking deeper, if you take a technical glance at the Custom Smart Cash Index chart below and consider how gold has advanced over the past 20 years, you’ll see the nearly 100% Measured Moves taking place (which have resulted in a 300%, 200%, 100% series of advances).  Yet, what you have also seen is a moderate market peak in 2000 followed by an extensive upside price rally peaking in 2007.  From that peak in 2007, we see a deep price decline and a series of sideways price trends leading up to the 2015~2016 US Presidential Election event. 

After that, we see a strong upside price rally that peaked in early 2018 (which we are calling the Ultimate Top in the US stock market).  This setup has a very telling pattern in price – not quite a Double-Top but rather a failed “Scouting Party” pattern where price attempted to rally above the previous 2007 peak and failed.

Currently, we believe the FUTURE BASE will set up near the current Head-and-Shoulders pattern on the Smart Cash Index or just above the previous BASE LEVEL.  There is a risk of a deeper downside price move in the Smart Cash Index which may set up a deeper price base, but we have no indication at this time that any immediate, deeper downside price move is about to unload on the global markets.  We believe the next 4+ years will be very similar to the 2009~2011 setup – where the US stock market attempt so establish moderate sideways/upside price base and where Gold settles above $1,800 and starts another measure move or transitions into a parabolic upside move higher.

The question our researchers continue to ask is “will the FUTURE BASE confirm and will Gold stay above $1800 to setup the new launch pad for the parabolic upside price trend?”.  We’ve clearly entered a different phase of the market – likely nearing the end of the “Excess Phase”.  Obviously, a deep downside price move in the US stock market is not something we want to see happen because it could create far more critical events in the future.  Yet, we believe the current BASE LEVEL and the FUTURE BASE level are ideal support zones for the US stock market and the new launch pad for precious metals. 

If our research is correct, by November, December or January, we should clearly know where the new BASE LEVEL has formed and if any deeper downside risks present any greater concerns.  The longer-term, our Super Cycles analysis suggests we are in for a wild ride – you certainly don’t want to miss this big move in metals.

This market, the future setups described above, and the profits lying therein are fantastic opportunities for skilled technical traders to capitalize on.  Isn’t it time you learned how I can help you find and execute better trades?  My incredible technical analysis team and our proprietary tools have just shown you what to expect 6+ months into the future.  Do you want to learn how to profit from these huge moves?  Sign up for my Active ETF Swing Trade Signals today! If you have a buy-and-hold account and are looking for long-term technical signals for when to buy and sell equities, bonds, or cash, be sure to subscribe to my Passive Long-Term ETF Investing Signals.

Stay healthy and rest easy at night by staying informed of market trends with The Technical Traders!

Chris Vermeulen
www.TheTechnicalTraders.com

Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and is the author of the book: 7 Steps to Win With Logic

Through years of research, trading and helping individual traders around the world. He learned that many traders have great trading ideas, but they lack one thing, they struggle to execute trades in a systematic way for consistent results. Chris helps educate traders with a three-hour video course that can change your trading results for the better.

His mission is to help his clients boost their trading performance while reducing market exposure and portfolio volatility.

He is a regular speaker on HoweStreet.com, and the FinancialSurvivorNetwork radio shows. Chris was also featured on the cover of AmalgaTrader Magazine, and contributes articles to several leading financial hubs like MarketOracle.co.uk

Disclaimer: Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned. Technical Traders Ltd., its owners and the author of this report are not registered broker-dealers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an investment based solely on what you read in an online or printed report, including this report, especially if the investment involves a small, thinly-traded company that isn’t well known. Technical Traders Ltd. and the author of this report has been paid by Cardiff Energy Corp. In addition, the author owns shares of Cardiff Energy Corp. and would also benefit from volume and price appreciation of its stock. The information provided here within should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. Technical Traders Ltd. and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. Lastly, the author does not guarantee that any of the companies mentioned in the reports will perform as expected, and any comparisons made to other companies may not be valid or come into effect.

Chris Vermeulen Archive

© 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