Gold & Silver: Consolidation

Aibek Burabayev - Contributor - Metals

Old wisdom says that patience is the key to success. We can see in the charts below that both metals are in a time-consuming consolidation mode. Only patient traders could survive in this situation as see-saw moves play on our nerves.

Chart 1. Gold Daily

Daily Gold Chart
Chart courtesy of

The gold hit a maximum at the $1375 mark this July and couldn’t advance higher. It dropped to the $1310 level at the end of the same month. Another zigzag to the upside was deemed to be a continuation of the bullish move, but it stopped below the July top at the $1367 mark. The next drop hit the $1302 level below the July’s low. The metal has reversed to the upside again and shaped another lower top at the $1352 level last week. I put an orange declining channel to isolate the consolidation for the comfort of your eyes. Continue reading "Gold & Silver: Consolidation"

Silver Has Hit The Target And Marked A New One!

Aibek Burabayev - Contributor - Metals

Silver has overshot the target set at the $20 mark in my June post leaving the gold in the dust. The AB/CD concept is simple yet effective as it utilizes perpetual Fibonacci ratios.

Ok, that’s done, but what is next? Let’s look at the charts below. I put the monthly chart first to refresh the global outlook for the soaring metal.

Chart 1. Silver Monthly: The Game Just Started!

Monthly Chart of Silver
Chart courtesy of

The metal has finally shot above the black downtrend, which I was talking about in my March update. It was a vital need for silver to break loose from the multi-year grip to stop the drop. Continue reading "Silver Has Hit The Target And Marked A New One!"

Alphabet, Amazon and Apple All Have Something In Common

Hello MarketClub members everywhere. Well, here we are at the end of one extraordinary week for the equity markets. I don’t remember a week where we watched the major market indices rally so dramatically from a bearish position in just three days.

In today's post, I'm going to be looking at the big 3 A's, Alphabet, Amazon and Apple. What these three stocks have in common is that they are all in downtrends and they all formed a negative (bearish) engulfing line yesterday. Should any of these three stocks close lower today, they will confirm that the high on Thursday will be a formidable resistance area for these stocks to overcome in the future.

Alphabet Inc.(NASDAQ:GOOG)

Trade Triangles: Weekly red, Monthly red, overall trend is bearish, trend strength -85.

Daily Chart of Alphabet Inc.(NASDAQ:GOOG)

Alphabet has a negative trend at the moment even though it has been extraordinarily strong in the past several years. It's not to say that it's going to hell in a hand basket, but rather it will begin to reflect a slowing economy that is evident in both the retail and dining sector. I would view a close below $697.34 as a confirming signal that it has put in an interim top and is going to retest its recent lows. Continue reading "Alphabet, Amazon and Apple All Have Something In Common"

Candlestick Patterns – Kicking

If you follow our blog, then you are definitely familiar with trader Larry Levin, President of Trading Advantage LLC. We have gotten such a great response from some of his past posts that he has agreed to share one more of his favorite trading tips as a special treat to our viewers. Determining the direction of the market can be tricky and just plain confusing at times, but Larry’s expert opinion keeps it simple and straight-to-the-point.

If you like this article, Larry’s also agreed to give you free access to his award winning book.

I think it's time for another look at Japanese candlestick analysis. Let's take a closer look at kicking, widely considered a high reliability pattern in candlestick charts.

Kicking patterns are another reversal signal.

Kicking patterns on a candlestick chart are formed when there are two marubozu - one white and one black - with a gap between them. Bullish kicking patterns would present as a black or filled candlestick without any wicks (shadows) followed by a gap higher with a white or hollow candlestick that is also without wicks. These are marubozu. They are formed when the market has a particularly one-sided trading session that closes at the high or low leaving just that real body of the candlestick. Continue reading "Candlestick Patterns – Kicking"

Understanding the Basics of Technical Analysis

Whether you are trading stocks or currency, technical analysis is an advanced tool used to try and predict changes in your market and trade accordingly.

At the base of technical analysis is price history. You are studying the price of a currency, it’s up and downs, and looking for an obvious indicator that will tell you when another up or down is coming up. Think of it like trying to learn to read tea leaves to see the future – except there is real science behind it.

Using Charts For Technical Analysis

The most basic tool for technical analysis is your chart or graph. Whether you are looking at a line graph or candlesticks, the Forex trading chart is giving you a wealth of information. First, you can check the support and resistance. These are the points where it seems that the currency pair won’t cross. Is there a certain range in which the currency is moving? When you see a price making sudden movements in that range you can use the support and resistance to predict when it is going to change its direction again.

Trend lines can be used when there is a definitive pattern that you can follow. You can chart the trend line if it is moving in one direction to predict where the price is going to go using indicators.

For example, let’s say you are studying a candlestick chart -which you should as they give you more indicators in one convenient place. This type of chart can help you to find trends that indicate a major reversal is about to take place. One indicator you can look for is what traders refer to as “three white soldiers” which indicate a bullish reversal is pending. Continue reading "Understanding the Basics of Technical Analysis"