Gold Failed And Silver Is On The Edge

Aibek Burabayev - INO.com Contributor - Metals- gold silver prices


As promised in my earlier post I updated the silver chart for you in this post as I spotted some exciting patterns forming on the chart below. But first, I would like to start with the stronger of the two metals, gold.

Chart 1. Gold Daily: Couldn’t Tag Previous Top

gold silver prices
Chart courtesy of tradingview.com

Indeed, it was another excellent try when the bulls attempted to break loose from this long-lasting range established between $1046 and $1375 in 2016. But the RSI indicator didn’t agree as lower tops showed a hidden Bearish Divergence and this spoiled this nice bullish attack. The $1375 resistance has been left untouched. Moreover, now this strong indicator indicates that the bears took the ball as it dipped below the crucial 50 level. Continue reading "Gold Failed And Silver Is On The Edge"

Freeport-McMoRan's Breakout Hits The Target

Aibek Burabayev - INO.com Contributor - Metals


Last February I called for a long position in Freeport-McMoRan Inc. (NYSE:FCX) amid temporary weakness within a consolidation phase. Later on in March when the expected weakness reached support I posted an alert for you to catch the opportunity and set the target area with a $19.78-26.30 range. At the start of this month, the initial target at the $19.78 level was hit, producing a 55% profit for the year. My congratulations are to all who took the longs!

I also mentioned Southern Copper Corporation (NYSE:SCCO) for those who prefer larger market cap companies. That trade produced a good profit of almost 39% in the same period. However, it doesn’t compare to the 55% profit from FCX even though it set the new record high at the $50.90 breaking above the previous long-term top ($49.82).

Below are the poll results where you voted for these two stocks last March. Continue reading "Freeport-McMoRan's Breakout Hits The Target"

Gold Update: Santa Claus Rally You Hoped For

Aibek Burabayev - INO.com Contributor - Metals


Two weeks before Christmas I posted the Gold & Silver update, where I asked you about your hopes for the traditional precious metals Santa Claus Rally at the end of 2017. The apparent answer those days was “No” as there was a severe weakness in the market and the price of the top metals was hitting another low. Let’s see in the poll results below what you were hoping would happen.

Chart 1. December 2017 poll results

Santa Claus Rally Poll
Poll courtesy of INO.com

And to no one's surprise, most of you expressed hope for a Santa Claus Rally. Bingo! A Christmas miracle came into the market the next day after the post was published to push the price of the top metals to the upside erasing almost all of the previous losses.

In the updated monthly chart below I would like to add a technical touch to this fairy tale. Continue reading "Gold Update: Santa Claus Rally You Hoped For"

Pendulum Experiment No.4: The First Failure

Aibek Burabayev - INO.com Contributor - Metals


Another year has passed, and we have started 2018 looking for new opportunities and facing new challenges. It is time to see the result of the 4th Pendulum swing published in the middle of 2017. To remind you, we had pitted palladium against orange juice in that race and below are your bets for that experiment.

Chart 1. Poll results

INO.com Traders Blog Poll
Chart courtesy of INO.com

These poll results show a good split of opinions as it wasn’t ultra-biased in favor of the metal. The majority of readers hit it right as their prediction came true and palladium (+23.5%) could easily beat not only the orange juice (1.7%) but most of the futures over the last half of the year, ranking the 6th. Moreover, this is the first failure of the experiment as it was thought that the previous loser orange juice would beat the last winner palladium, but it didn’t happen.

I am not upset about this outcome because when you start an experiment, you like to see how your hypothesis works out. Any success or failure is the part of a test, and quite often you find out something genuinely new, which is outside of your initial thought. Many things in this world are invented during the experiments that were meant to find something different.

From the very beginning, I knew that one thing was inevitably imperfect in this experiment, I always choose the top performing/underperforming metal instead of the top losing/gaining futures against the other futures to stay focused on the metals. Another thing is the period of the experiment. This is also a crucial variable of the experiment. So far it works pretty well, and I would tune only the first imperfection to let the futures, not metal to be picked against each other from now on. Continue reading "Pendulum Experiment No.4: The First Failure"

S&P 500 Vs. Gold: Someone's Gain, Someone's Pain

Aibek Burabayev - INO.com Contributor - Metals


In May I recommended that gold bugs think about buying stocks for gold to enjoy the bullish momentum on the market. This call paid well as S&P 500 index almost gained 6 grams of gold (10%) since then.

In terms of dollars, the index did even better by hitting the projected target of $2650 set in the May chart. Back in those days the S&P 500 was flirting with the $2400 mark, and the target level looked so distant then.

In this post, I will update the S&P 500/Gold ratio chart and see if there is more room to the upside.

Chart 1. S&P 500 Monthly In Grams Of Gold

S&P 500 Monthly In Grams Of Gold
Chart courtesy of tradingview.com
Continue reading "S&P 500 Vs. Gold: Someone's Gain, Someone's Pain"