Gold & Silver: Beware Of Correction

Aibek Burabayev - INO.com Contributor - Metals


What goes up should come down. The precious metals are in a good bullish move, but one should be prepared for the possible downside corrections ahead as the natural phases of market cycles change again and again.

Chart 1. Gold Daily: Channel’s Top Hurdle

Daily Gold Chart
Chart courtesy of tradingview.com

When it comes to money, people start to excel in math, even if they didn’t in school. And so did I when it came to the market analysis, I started to understand both the beauty and power of geometry in the trends even though I didn’t like this subject in the school.

The price of gold made a tiny puncture on the upper side of the blue ascending channel but then retraced to close below it It’s another illustration of how powerful the trend channels can be. However, even if it gets broken, again, it will add more value as evidence of an even stronger price move.

There's almost $17 left for gold to hit the previous major top, but it vanished behind the channel’s top as does a setting sun behind the mountains. What’s next? It’s the perpetual question in the markets. Continue reading "Gold & Silver: Beware Of Correction"

Gold & Silver: Gold Breaks Up As Silver Licks Wounds

Aibek Burabayev - INO.com Contributor - Metals


The broad weakness of the U.S. dollar supported precious metals and currencies. Gold has been saved from silver's Flash Crash destiny so far. Below are the updated charts for gold and silver.

Chart 1. Gold Daily: Breaking Upside

Daily Gold Chart
Chart courtesy of tradingview.com

The experimental clone chart for gold that I posted in April amazingly finished its move down as planned although later than expected. The anticipated reverse to the upside followed the end of the consolidation highlighted with the gray rectangle. Continue reading "Gold & Silver: Gold Breaks Up As Silver Licks Wounds"

Silver Stocks: This Penny Stock Became A Superstar

Aibek Burabayev - INO.com Contributor - Metals


The continued weakness in the silver price offers opportunities to buy silver stocks, which have followed the metal to the downside. This time I selected three of the top silver stocks by their P/E ratio for analysis.

Table 1. Top Silver Stocks By P/E


Image courtesy of finviz.com

Top three companies are:

1. Silvercorp Metals Inc. (NYSE:SVM)
2. Coeur Mining Inc. (NYSE:CDE)
3. Silver Standard Resources Inc. (NASDAQ:SSRI)

Silver started to drop into a long lasting correction a year ago on the 4th of July, 2016. Below is a comparison chart of three stocks and silver itself to show you how they performed relative to each other. Continue reading "Silver Stocks: This Penny Stock Became A Superstar"

Gold & Silver: Time Machine

Aibek Burabayev - INO.com Contributor - Metals


The Time Machine is the dream of many (especially those who bet on sports) and I’m excited to see if we will be able to travel through time shortly as physics scientists confirmed that it is possible. In the meantime, we could profit or at least be prepared for the future using the market’s time machine.

Last week a textbook example of a “Flash Crash” occurred in the silver market when the price dropped almost 2 dollars (10%) within a minute! It’s amazing that gold was untouched by this event creating an arbitrage opportunity as all discrepancies are subject to speculative trading. That’s why I put the silver analysis first this time to show the map for a possible gold move. By the way, it is quite often that silver is the principal instrument for market movement as it has less liquidity and therefore more opportunities for market “gangsters” or “pirates” to attack it.

Chart 1. Silver Daily

Daily Silver Chart
Chart courtesy of tradingview.com

After silver breached the previous major low established last December at the $15.64 mark the map has changed. What was tagged as a first move up turned out to be a tiny countertrend conjunctive move within the small complex correction contoured with the red downtrend. The Flash Crash drop almost reached the downside of the red channel, which could finish that small complex correction. Continue reading "Gold & Silver: Time Machine"

Silver Monthly: Symmetric Triangle

Aibek Burabayev - INO.com Contributor - Metals


It’s amazing how an updates’ timing can coincide with an interesting chart pattern that’s shaping up or trendline reactions. This time I spotted a Symmetric Triangle pattern as I was preparing this monthly update. I am happy to share it with you in the chart below.

Chart 1. Silver Monthly (Zoomed): Symmetric Triangle

Silver Monthly ChartChart courtesy of tradingview.com

The market got stuck for more than one year inside of the black Symmetric Triangle pattern. It shows that neither bulls nor bears could change the balance of the market as price volatility on the monthly chart faded and we reached the apex of the triangle where the trendlines converge. Continue reading "Silver Monthly: Symmetric Triangle"