Yesterday, I made a video on gold - you can watch it here. Today, I have been looking at a market that has a lot of potential on the upside based on its relationship to the gold market and a classic chart formation. This particular chart formation is one of the most reliable in the arsenal of patterns that I watch. Making this pattern even more powerful was the fact that our "Trade Triangle" technology kicked in today for the first time in six months for this particular stock.
The chart formation we are talking about is called a "head and shoulders" formation. This formation is well-known to any serious market technician as it has proven to be one of the most powerful and reliable formations over the years. Another positive about this formation is that it actually measures how far a move will travel on the upside or downside. You can have a "head and shoulders" top which would indicate prices going lower, or you have a "head and shoulders" bottom indicating prices going higher.
In this short video, which lasts four minutes you'll see exactly how I analyzed this particular stock and what the upside potential is for this market. There is no charge for watching the video and no registration is required.
I highly recommend that you take four minutes to watch this educational training video and see how you can benefit from this particular formation.
19 thoughts on “This Stock Is Ready To Rock ... New Educational Trading Video”
Thank you for your feedback.
I think you answered your own question as to what you should have done.
1. Use a stop loss. (you did not have one)
2. Red exit Trade Triangle today. (you did not act on this signal)
I hope this shows just how important stops and signals are. Ignore them at your own peril.
All the best,
Any advice on ABX now, at 31.63? I held on after buying at 40.30 waiting for it to come back from around 35-36 and then today it plunged. Besides (shoulda) stop loss, what should I do now?! The previous comment suggests around 30.80 as support but to me fibonnacci support looks like 31.73 which was broken today slightly. Monthly triangle is still green and weekly red was issued today.
If you had bought ABX in the last two weeks your stop loss should be around $30.79-$30.82 (low of the last three weeks) since you are anticipating where a red sell triangle would appear on the weekly chart. I realize that this is a lot of risk to be taking so I do recommend buying gold stocks on pullbacks rather than "chasing" strength. I usually wait for some type of flag "consolidation" pattern in gold stocks before buying (after a monthly/weekly buy signal) as it cuts down my risk when using this system i.e. my entry point is closer to where the red triangle (3 week low) would be if the stock reversed. Remember, you usually have some time to get in after a monthly signal (sometimes even a few weeks) to get a better price - especially if the stock has been selling off for the last few months, there is bound to be lots of overhead resistance.
The way I see it ABX is still a solid trade if you are using the triangles for stock trades like you should be (montly, weekly). So just hang onto it like Adam suggests.
Barricks is still down at closing Friday in spite of gold rise overall - a reason may be http://www.reuters.com/article/fundsFundsNews/idUSLU59831520090130
The Norway oil fund announced on 30 Jan that it had divested their large holding in Barricks for environmental reasons and that may have had an impact (even though they had completed it between July and January)
Let's hope this week will be different
Thank you for your feedback and I appreciate the comments you made about our blog.
We remain positive on ABX. Should this stock closes higher for the week I would reinstate a position. We are still looking for an upward move towards the $54 level.
I would say that if Gold closes over the 902 level on Friday it is a good possibility that will see this market began its upward track.
Every success in trading, and once again thank you for your feedback.
I like your blog and think your writing has a lot of common sense but your call on this stock was a little wayward. If I had bought in at $39.23 as recommended by your monthly trade triangles I would now be stopped out with a 5% loss. Any ideas for readers about when to get back in?
I bought ABX at 40.30 on Monday morning after reading this post and yesterday it closed at 37.10. Should I have
a) waited for pullback to buy?
b) set stop loss at 5% and sold? or
c) just hang in now?
Sorry to get back to so late on this, we've had a major snowstorm and several other disruptions in our business here in Maryland and but all is well now.
To answer your question, I still think that ABX and gold are headed higher and the pullback in ABX was back to the original breakout
which was around $37 a share as we said in our video.
Everyone has different investment objectives I think that this market is still headed higher and certainly if we close higher for the week that will be another strong indication that this market is ready to rock.
In hindsight it probably would have been wise to wait for a pullback, however sometimes markets don't pull back. And they continue to move in the direction you expect them to move. My advice at this moment is just to hang on and if you're very uncomfortable set a stop below the low that was seen on Wednesday.
Every success in your training and thanks for making a comment.
I wouldn't hesitate for a second to try the 30-day free trial.
Adam - what can I say? Your video yesterday was excellent and timely but your trade triangle signals for many of the gold stocks were even earlier than you! I am up 40+% on rgl and looking forward to some nice moves in the other gold stocks (majors and juniors)!!!
We are very lucky to have members like you who really take the time to understand and follow the Trade Triangles.
Every success in trading. It looks like the gold market has a ways to go on the upside, so let's fasten our seat belts and enjoy the ride.
Hey Adam I was just wondering if one can obtain a free trial of your trade triangles without paying the registration fee. I would just like to test out the application. Thanks for the videos that you post regularily, they are very helpful.
Thanks for your feedback. I appreciate your question, but at the moment the set up for MarketClub gives you 30 days to learn our approach and use MarketClub. During the 30 days, if you decide MarketClub is not for you, you receive a full refund, what could be fairer than that?. You have no risk.
Good luck and every success in the market.
Nice call Adam. I appreciate all the work you do on gold. Keep it up.
Thanks for taking the time to comment.
Timely content - Gold at $900 and ABX up 11% after you made that video.
right on , aem, gg, rgld, all holding their own.
Appreciate your positive feedback.
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