Aibek Burabayev, Author at INO.com Trader's Blog

Short Copper, Pray For Gold, Watch Ratio

Posted on February 9, 2015February 9, 2015 by Aibek Burabayev

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" →

Metal Tactics: Short Silver and Palladium With A Tight Stop

Posted on February 3, 2015February 3, 2015 by Aibek Burabayev

Dear INO.com Readers,

The end of January brought worrisome signals to the metals' bulls and I want to show you where Silver and Palladium failed to sustain growth and why.

Silver Is In A Downtrend

Let's start with Silver, as it's more liquid and therefore more interesting. Below is a weekly candle chart. I started my metals posts from an overview of a monthly time frame and now I am digging deeper into details using a weekly period.

The medium term trend is bearish. At the end of 2014, Silver managed to stop a free fall that started above the $21 level. Price sculpted a double bottom figure (highlighted in the blue semicircle) in the $15-18 range. Continue reading "Metal Tactics: Short Silver and Palladium With A Tight Stop" →

Gold Update: Total Recast

Posted on January 21, 2015 by Aibek Burabayev

Dear INO.com readers,

Today Gold hit the $1300 level and I updated my chart for Gold, as it was price trigger for my previous bearish scenario.

In my first article last December I charted the line graph for Gold with a descending triangle pattern detected on this metal. My projection for the mentioned pattern was bearish with quite bold target levels.

What is up today?

The main rule for success is to not to be biased and always challenge yourself with making a brand new analysis from time to time, and surely when market is not going your way.

Today I prepared an absolutely new Gold graph to put fresh eye on it, now with candlesticks.

Gold Chart, small and big wedge chart patterns.

This time I detected a very interesting chart pattern called the “wedge.” This type of patterns is outstanding as it has an ambiguous impact on the market with either a continued or reversed outcome. Luckily, we have two wedges on the same time frame at once. Both are the falling wedge type because of the descending highs and lows. The big one is highlighted in green and the small is in black. Apart from it, we have two more rare technical species on the chart. Continue reading "Gold Update: Total Recast" →

Safe Haven Test: Gold vs Swiss franc. SNB edition.

Posted on January 15, 2015January 15, 2015 by Aibek Burabayev

Today is surely Swiss National Bank’s day after it abandoned the cap for EUR/CHF cross which was introduced in September 2011. Swiss franc surged for a record against everything that can be traded. What are the first associations when we are thinking about Switzerland? Yes, first is gold, then luxury watches and of course chocolate. This country has had the gold of the world stored in its banking vaults and a safe currency, but now the Central Bank is nervous because of the currency’s excessive appreciation. So today’s shocking Swiss franc move inspired me to compare both instruments boasting a safe status. Continue reading "Safe Haven Test: Gold vs Swiss franc. SNB edition." →

Ready Or Not, Copper Could Halve Its Value!

Posted on January 12, 2015January 12, 2015 by Aibek Burabayev

Dear INO.com readers,

January turned out to be a harvest month for decent gain opportunities. This week, let's discuss copper which could lose half its weight this year. Impressive! Let's figure out how.

On the chart above, you'll see a monthly candle graph for COMEX high grade copper futures. As you can see, copper isn't phlegmatic at all, see-sawing up and down from below $1, up to almost $5 and again down for the past dozen years. And of course, that's why it is one of the best choices fo speculative traders.

2008 was a disastrous year for copper, free-falling from a $4.26 high to the $1.25 level and losing 70% of its value. Bad news for miners and brilliant for bear traders!

This reddish metal started 2009 as a rocket. Not to overload the graph, I didn't put Elliot waves on the bullish run. Two cycles completed on the way up from $1.25 to $4.55, where the fifth wave stalled with the top done at the $4.65 level at the start of 2011. 2.5 years of total growth thanks to QE. You should have noticed that fall is very short lived compared to unhurried growth, as fear is stronger than greed everywhere in the markets. Continue reading "Ready Or Not, Copper Could Halve Its Value!" →

Author: Aibek Burabayev