Gold/Silver Ratio: Another Chance To Short?

Aibek Burabayev - INO.com Contributor - Metals


In February I posted an idea to short gold and buy silver simultaneously at the 79 oz level as the ratio hit the top of the multi-decade range. The progress was surprisingly good and I wrote about it in July update and then the ratio stalled. Today I would like to show how we can use this respite to pocket gains.

Below is the ‘face-lifted’ February chart where I put focus on the main idea.

Chart 1. Gold/Silver Ratio: Mid-Range Set Strong Barrier

Gold/Silver ratio Chart Mid-Range barrier
Chart courtesy of tradingview.com

This is the so-called ‘bird’s-eye’ view of the ratio. Twenty years in the range with rare overshoots beyond the range and the single ultra-strength of silver in 2011, this could be titled as the fearless or careless time as you wish. Continue reading "Gold/Silver Ratio: Another Chance To Short?"

Gold/Silver Ratio: Halfway To The Target

Aibek Burabayev - INO.com Contributor - Metals


In my February post I called for the topping of the ratio as it hit the upside of the long-term range. The idea was to short gold and buy silver simultaneously at the 79 oz level. It's gone very well, and you can see it in the following charts.

Below is the reconstruction of the February chart to refresh your memory.

Chart 1. Gold/Silver Ratio Monthly: Half Of The Range

Gold/Silver Ratio Monthly
Chart courtesy of tradingview.com

I changed the color of my old remarks to black to stress your attention to the new colored annotations. The post-idea ratio dynamics are highlighted with the orange rectangle. Continue reading "Gold/Silver Ratio: Halfway To The Target"

Gold/Silver Ratio: Gold Loses Its Shine

Aibek Burabayev - INO.com Contributor - Metals


Back in August, I updated my gold/silver ratio chart with conservative bullish targets. Today I would like to share my growing concerns about the ratio's dynamics as fresh highs haven't appeared since my first post. As I've said many times before, let us not to be biased. Change the charting when the chart changes!

Chart 1. Gold/Silver Monthly: Tarnished Diamond

Monthly Chart of Gold/Silver
Chart courtesy of tradingview.com

Above is the reconstruction of the chart from the previous post about the ratio. I added several remarks in red the call-outs and also put the middle of the green channel in a dashed line. But the most important addition is the simple, classic Momentum indicator below the chart with remarks. Continue reading "Gold/Silver Ratio: Gold Loses Its Shine"

Gold Ratios: Gold Is A Top Killer When You Need Safety

Aibek Burabayev - INO.com Contributor - Metals


Gold/Silver Ratio: "Shines Bright Like A Diamond."

Chart 1: Gold/Silver Ratio Monthly

FOREX:XAUUSDO/XAGUSDO
Chart courtesy of TradingView.com

Last December I had written my first post with quite an ambitious target for this ratio at the 109oz level as a possible outcome of a very rare diamond reversal pattern (highlighted in blue lines and the target is highlighted in blue horizontal dashed line). At that time the ratio was at the 72oz level and it has advanced 11% now to the 80oz level. Continue reading "Gold Ratios: Gold Is A Top Killer When You Need Safety"

Short Copper, Pray For Gold, Watch Ratio

Aibek Burabayev - INO.com Contributor - Metals


Dear INO.com Readers,

Today, I'm reviewing three metals based on short-term analysis.

Copper Is A Good Sell

Daily Copper Candlestick Chart

In my January post, I recommended selling copper above $2.75 and I hope you enjoyed a nice profit. For those of you who didn’t take that chance, below is my new one for you.

In December, copper entered a small steeper downtrend (highlighted in red) as the falling price accelerated. After breaking below the descending triangle’s base at $3.02 on the monthly charts, this red metal hit a multi-year low at $2.42, unseen from 2009, losing an impressive 20% in just 2 months. The price met the downside of the channel and quickly bounced off for a $0.20 gain and I will show why you should consider it a dead cat bounce. Continue reading "Short Copper, Pray For Gold, Watch Ratio"