Gold And Oil Breakout: We Can Benefit!

Aibek Burabayev - INO.com Contributor - Metals


In my earlier posts I showed you how gold and crude oil broke out of their trends. Gold moved higher amid an oil break down. The simplest trade here is the purchase of gold on the dip and the sale of oil on pullbacks. Today I want to share with you some other options. We can use oil related currencies instead of oil as they tend to lag and overreact to oil moves.

Chart 1. Gold Vs. Russian Ruble Weekly: Say Hi To A New High!

Gold Vs. Russian Ruble Weekly Chart
Chart courtesy of tradingview.com

The currency of the world largest country stopped strengthening only last Friday despite that oil reversed much earlier. I call this an overreaction of the currency to the oil move. I guess it’s all about the mechanical reaction of retail USDRUB sellers to the ruble and oil strength which was gone long before they started to act. Usually, non-professional players tend to sell bottoms and buy tops on market panic. Another good thing in this market is that while the ruble was strengthening gold pulled back down, giving potential buyers extra bonuses (falling gold + overreacting ruble).

The Gold/RUB pair has been in an uptrend for 2 years. At the start of 2016 the market it broke out of the triangle above the RUB 78K level and then rapidly moved higher. It topped beyond 2015 high at RUB 101,858 level in February. Continue reading "Gold And Oil Breakout: We Can Benefit!"

Here's A Stock That Technically Taxes The Mind And Looks Great

I found this stock using the Smart Scan technology and wanted to share it with you today. The stock is Apache Corp. (NYSE:APA).

I'm looking at this market on a technical basis as all of Trade Triangles are now positive and showing an upward trend.

As you can see on the chart, I have labeled numbers 1 through 7 so you can better understand exactly what you're looking at.

Continue reading "Here's A Stock That Technically Taxes The Mind And Looks Great"

Metal Tactics: Gold And Silver

Aibek Burabayev - INO.com Contributor - Metals


Gold

Price is still above the 61.8% Fibonacci retracement line on the monthly charts at the $1155 level.

Gold - Classic Chart

Daily Gold Chart

The bulls have scored $25 from the close of the week ending on March 13, 2015 and that sent Gold above the short term downtrend beyond $1180 (highlighted in red on the chart above), which started in January when the metal hit $1300. Continue reading "Metal Tactics: Gold And Silver"