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
Dow Stock Market Trend Forecast Into Mid 2022 - 4th Dec 21
INVESTING LESSON - Give your Portfolio Some Breathing Space - 4th Dec 21
Don’t Get Yourself Into a Bull Trap With Gold - 4th Dec 21
GOLD HAS LOTS OF POTENTIAL DOWNSIDE - 4th Dec 21
4 Tips To Help You Take Better Care Of Your Personal Finances- 4th Dec 21
What Is A Golden Cross Pattern In Trading? - 4th Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Market Outlook – how far is down?

Commodities / Gold & Silver Stocks May 01, 2007 - 11:15 PM GMT

By: Peter_Degraaf

Commodities While it is next to impossible to pick the exact tops and bottoms, there are some signs we can look for to help us position ourselves to buy into weakness, and do some selling into strength.


In view of the fact that the fundamentals for gold remain very bullish, (growing demand – diminishing supply), we do not need to let corrections bother us, for they will afford us with many opportunities to ‘add-on', for a number of years to come.

Charts courtesy of www.stockcharts.com

Featured is the HUI index of unhedged mining stocks. I expect the first clue that the metals and mining stocks are ready to turn back up, to come from this index. The red arrows are targets which may or may not be hit, they are simply ‘targets'.

The black lines are ‘top to bottom' ranges. ‘A' measures 75 mm; ‘B' = 60 mm; ‘C' = 38 mm; ‘D' = 33 mm. In the event that ‘E' stops at the 330 target (right at the 200DMA), the ‘top to bottom' range will be 26 mm, and if ‘E' does not stop until 320, the range will be 30 mm. The positive progression in the ‘top to bottom' ranges from A to D, causes me to expect a bottom fairly soon, with the ‘top to bottom' range for ‘E' to be less than ‘D' or less than 33 mm.

Since I am not pretending to be God (who alone does know the future), here is what I will be looking for, at or near those two red arrow targets at 320 and 330, to tell me that the HUI is turning back up again.

•  Two successive closes above the high point in the range of the previous day. Or

•  An ‘upside reversal' (price first goes below the low of the previous day, but closes above the close of the previous day).

Here is another look at the same chart. Notice the blue dashed uptrend line which is carving out a positive Advancing Right Angled Triangle.

Here also, these red arrows are targets that are now close to being hit.

The purple down-trending line indicates short-term resistance. Once we see two positive closes to the right of that line, we can be fairly sure that the next up-cycle is underway.

ARAT's most often break out on the upside, especially so the closer we come to the apex. The breakout at 370 will likely be powerful. Patience is all we need in the interim.

Featured is the US dollar index. For the past four months the green ‘speed lines' have contained the slide. The three ‘confirming indicators' (blue dashed lines), are telling us (by ‘non-confirming), that we should expect a few days (weeks?) of a rise in this index, which will likely prevent the metals from rising until this index nears the target at 82.50 (blue arrow).

Happy trading!

By Peter Degraaf.

Peter Degraaf is an online stock trader with over 50 years of metals trading experience. He sends out a weekly E-mail to his many subscribers. For a 60 day free trial, contact him at ITISWELL@COGECO.CA

DISCLAIMER: Please do your own due diligence. I am NOT responsible for your trading decisions.


© 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