Gold Update: Total Recast

Aibek Burabayev - Contributor - Metals

Dear 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"

How The Oscars May Affect The Way You Look At The Markets

This past weekend I saw a great movie titled, The Imitation Game starring Benedict Cumberbatch and Keira Knightley, both of whom are nominated for Academy Awards, as is the movie itself.

The Imitation Game chronicles the life of Alan Turing, who is largely credited with developing the computers we use today. The story revolves around the incredible work that was done at Bletchley Park in England to break the German Enigma code. At the time, the Enigma code and machine were thought to be unbreakable. The breaking of this code helped shorten and end the war. Otherwise, I would be writing this post in German and not English (I was born in England right after WW2).

If you haven't seen the movie, I highly recommend seeing it and witnessing the extraordinary genius of a remarkable man named Alan Turing.

Why would I discuss and recommend a movie when MarketClub and are financial websites dealing with stocks and futures? The reason I bring this up is because I wanted to share with you some math today that can help you in the market.

Now don't worry this is not high-level mathematics, it has more to do with a remarkable sequence of numbers known as the Fibonacci sequence. Continue reading "How The Oscars May Affect The Way You Look At The Markets"

Ready Or Not, Copper Could Halve Its Value!

Aibek Burabayev - Contributor - Metals

Dear 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!"

This Could Get Very Ugly

All this week I been talking about how the indices were having problems. It started off with the Russell 2000 index creating a "death cross." A "death cross" occurs when the 50-day moving average crosses below the 200-day moving average.

I also discussed on Monday that negative divergences were forming on many of these indices. That means prices are going higher, but are not being followed by momentum. This can be an early warning sign that a correction is coming.

So today's action comes as no surprise, as I was looking for this market to be on the defensive. The question is, how far can these markets fall?

To answer that question, we can use our Fibonacci tool to help us measure some of the key areas that will lend support to the indices. Judging by today’s market action and the fact that tomorrow is Friday, you may want to fasten your seat-belts. As a trader once told me, "they slide faster than they glide."

Every success with MarketClub,
Adam Hewison
Co-Creator, MarketClub

Today's Fibonacci Points For Apple Inc. and Gold

Yesterday was one of those "OMG" days where everybody ran for the exit at the same time. When that happens, there is indiscriminate selling of almost every market and this can present an opportunity for smart traders to step in and either add to positions or take new positions in the direction of the major trend.

Such is the case in Apple, Inc. (NASDAQ:AAPL) and spot gold (FOREX:XAUUSDO). Both of these markets have pulled back into Fibonacci levels that should offer good support and a turnaround opportunity. In today's video, I will be examining the recent pullback in gold and Apple, which is flirting with the $100 a share level.

I'll also be looking at Tesla Motors, Inc. (NASDAQ:TSLA), who just made a new high for the week today after it announced some very positive earnings yesterday. I will share with you my upside target zone for this market and it may surprise you. I'll also be looking at two of my favorite stocks, Netflix, Inc. (NASDAQ:NFLX) and, Inc. (NASDAQ:AMZN). Are they a buy right now?

Have a great weekend everyone and every success with MarketClub,
Adam Hewison
Co-Creator, MarketClub