Gold & Silver: Silver Hits Support As Gold Cracks Consolidation

Aibek Burabayev - INO.com Contributor - Metals


The recent collapse of the top precious metals shouldn't be a surprise if you read my previous Gold & Silver update in November, where I called for the upcoming “storm” after the “calm.” In this post, I’ll share with you the updated charts of both metals.

I changed the order of the charts, and this time I would start with silver as it reached the first decision point ahead of gold.

Chart 1. Silver Daily: First Target Reached

Daily Silver Chart (XAGUSDO)
Chart courtesy of tradingview.com

Silver has a strong bearish structure as the red long-term trendline keeps the pressure on silver. The second leg of consolidation within the black parallel channel lacked power as the price couldn’t reach even the top of the first leg established in October at the $17.47 per oz. It stalled at the $17.39 per oz. and then collapsed for more than a half of a dollar to check the consolidation support. Continue reading "Gold & Silver: Silver Hits Support As Gold Cracks Consolidation"

Top Silver Miners Are Vulnerable As Silver Hits Refreshed Low

Aibek Burabayev - INO.com Contributor - Metals


Silver (FOREX:XAGUSDO) hit the previous low set in October at the end of last week in line with my expectations posted earlier. It undoubtedly affects the silver mining companies’ stocks, and in this post, I would like to update their performance for you.

The top silver mining stocks filtered last time by ROE are SSR Mining Inc. (NASDAQ:SSRM) (former ticker SSRI), Coeur Mining Inc. (NYSE:CDE) and Pan American Silver Corp. (NASDAQ:PAAS).

Chart 1. Top Silver Stocks By ROE Vs. Silver: No Winners

Silver vs. Silver Miners
Chart courtesy of tradingview.com

The chart above begins on the 8th of September, 2017 when silver shaped the peak and started to drop. For the past three months, there are no winners here. Silver (black) lost the least, but still a significant -8.5% for this short period. If you read my earlier post about the top gold stocks’ performance you found that there was at least one stock (Golden Star (GSS)) with the positive dynamics. Continue reading "Top Silver Miners Are Vulnerable As Silver Hits Refreshed Low"

Gold & Silver: The Calm Before The Storm

Aibek Burabayev - INO.com Contributor - Metals


In September I warned you about the possible weakness in both gold and silver after a good rally as strong reverse signals appeared on the chart. That warning alert paid well as the metals dropped heavily – gold lost more than 7%, and silver fell more than 10%. I hope it helped those of you who had market exposure that time.

There are updated charts below with further price action forecast, which is based on pattern recognition and market staging approach. I hope my detailed graphs with annotations will help you understand market behavior, training your eyes to recognize patterns and determine market stages with me.

Chart 1. Gold Daily: The Baby Bird Could Fall Out Of The Nest

Gold Chart
Chart courtesy of tradingview.com

In the previous gold chart I put two zigzags to show you possible paths for further price action, the red zigzag was the main option, it showed the downside move with a small consolidation inside. In reality, the drop has been even sharper with just a minor correction within. Continue reading "Gold & Silver: The Calm Before The Storm"

HUI Is Testing Support, XAU Is Yet To Try

Aibek Burabayev - INO.com Contributor - Metals


Much to my dismay, I’ve never covered these hot indices in my posts. I detected some interesting chart patterns as well as significant price actions and thought if it might be interesting to cover and discuss.

These indices have a long trading history as well as great companies that are tracked by each index. The NYSE Arca Gold BUGS Index (HUI) and Philadelphia Gold and Silver Index (XAU) are the two most watched gold indices on the market. The main difference between them is that the HUI Index’s components are only gold producers (17 companies) whereas the XAU Index includes both gold and silver miners (30 names). Below is the table of listings for comparison.

Table 1. Current Composition of Indices

XAU and HUI Index Listings

I highlighted the matching companies in green so you can easily see the difference between the indices. It is evident that the HUI index almost entirely sits in the XAU index (15 out of 17 names are in), the latter in its turn covers broader the precious metals market. Let us see in the charts below their dynamics and possible price action. Continue reading "HUI Is Testing Support, XAU Is Yet To Try"

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"