Gold Bulls Have Last Fifty Bucks To Survive

Aibek Burabayev - Contributor - Metals

The current situation in the precious metals markets very well illustrates how patience in trading can save money for the trader. It means that a trader who waits for the confirmation of the price action has an ample advantage compared to those who choose assumption mode entering the market without confirmation. In other words, the ‘trade what you see’ method is way safer than the ‘trade what you assume’ method. For many years in trading, again and again, I see how true the words said above, especially during market consolidations.

The corrective chart structures are unpredictable though very dangerous, especially for newcomers. As I wrote earlier such structure shows the market’s indecision with a lot of hesitant zigzags which have no clear ending point both in time and in the price level and therefore are risky. Continue reading "Gold Bulls Have Last Fifty Bucks To Survive"

Mining Leaders Have More Room To The Downside

Aibek Burabayev - Contributor - Metals

Back in August of this year, I shared with you the comparison charts of gold and silver stocks. The precious metals hit the new highs before that, and so did the mining stocks. After that, the prolonged correction of underlying assets (gold and silver) put pressure on the mining stocks. Below is the chart showing you the 6 stocks’ behavior.

Chart 1: Top Mining Stocks: The Leaders Lost The Most

Chart 1: Top Mining Stocks
Chart courtesy of

The 3 top gold stocks by past performance: Continue reading "Mining Leaders Have More Room To The Downside"

Gold & Silver: Consolidation

Aibek Burabayev - Contributor - Metals

Old wisdom says that patience is the key to success. We can see in the charts below that both metals are in a time-consuming consolidation mode. Only patient traders could survive in this situation as see-saw moves play on our nerves.

Chart 1. Gold Daily

Daily Gold Chart
Chart courtesy of

The gold hit a maximum at the $1375 mark this July and couldn’t advance higher. It dropped to the $1310 level at the end of the same month. Another zigzag to the upside was deemed to be a continuation of the bullish move, but it stopped below the July top at the $1367 mark. The next drop hit the $1302 level below the July’s low. The metal has reversed to the upside again and shaped another lower top at the $1352 level last week. I put an orange declining channel to isolate the consolidation for the comfort of your eyes. Continue reading "Gold & Silver: Consolidation"

Gold Is At The Crossroads! Which Stock Is The Most Vulnerable?

Aibek Burabayev - Contributor - Metals

Back in March in my major gold update I warned you that what was being billed as a New Bull Run could easily turn out to be a complex correction. In that post’s chart, I didn’t put the small Fibonacci retracement level at 38.2% as I was impressed with the strong move to the upside from the bottom and I thought it would be useless. These days the situation has changed and I put an updated chart below.

Chart 1. Gold Monthly: First Serious Resistance

Gold Monthly Chart W/Fibonacci
Chart courtesy of

Last month the gold stalled at the red trendline resistance as the price closed 25 dollars below the month’s maximum. This month the price action will be crucial as there is no room to step back. It would be hard work to crack double resistance within the $1360-1381 range, which consists of the red trendline and the 38.2% Fibonacci retracement level. Continue reading "Gold Is At The Crossroads! Which Stock Is The Most Vulnerable?"

Trading Live Around Apple and The Fed Chickening Out...Again!!!

Well that was a crazy trading day! Come on into my trading office and I'll show you how we handled the Facebook and Apple earnings trade. Plus, we focus in on trades related to the US dollar because the Fed totally chickened out...again!!!

Learn more about here.

Plan Your Trade, and Trade Your Plan,
Todd Gordon