S&P 500 Consolidates, Is Another Drop Ahead

Aibek Burabayev - INO.com Contributor - Metals - S&P 500 Consolidates


In this post, I will share with you two maps as the S&P 500 consolidates to address two questions that are probably on your mind these days. The first is related to the long-term trend, shall we consider that significant ten percent drop that started at the end of January as a threshold for the long-term Bear Face? And the second question is related to the current situation, will this robust recovery continue further?

Let’s be diligent and answer those questions one by one.

Chart 1. S&P 500 Monthly: Consolidation Not A Reversal Yet

S&P 500 Consolidates
Chart courtesy of tradingview.com

First of all, I would like to draw your attention to the black long-term trendline support, which starts post Great Recession period. The S&P 500 is far above this trigger, and I guess that even the current consolidation could hardly reach it. So, for the long term Bear Face to start sellers should push the index below that trendline, which currently sits at the $2100 mark. As this is not the case now, there is no reason for panic then. Continue reading "S&P 500 Consolidates, Is Another Drop Ahead"

Gold Failed And Silver Is On The Edge

Aibek Burabayev - INO.com Contributor - Metals- gold silver prices


As promised in my earlier post I updated the silver chart for you in this post as I spotted some exciting patterns forming on the chart below. But first, I would like to start with the stronger of the two metals, gold.

Chart 1. Gold Daily: Couldn’t Tag Previous Top

gold silver prices
Chart courtesy of tradingview.com

Indeed, it was another excellent try when the bulls attempted to break loose from this long-lasting range established between $1046 and $1375 in 2016. But the RSI indicator didn’t agree as lower tops showed a hidden Bearish Divergence and this spoiled this nice bullish attack. The $1375 resistance has been left untouched. Moreover, now this strong indicator indicates that the bears took the ball as it dipped below the crucial 50 level. Continue reading "Gold Failed And Silver Is On The Edge"

Freeport-McMoRan's Breakout Hits The Target

Aibek Burabayev - INO.com Contributor - Metals


Last February I called for a long position in Freeport-McMoRan Inc. (NYSE:FCX) amid temporary weakness within a consolidation phase. Later on in March when the expected weakness reached support I posted an alert for you to catch the opportunity and set the target area with a $19.78-26.30 range. At the start of this month, the initial target at the $19.78 level was hit, producing a 55% profit for the year. My congratulations are to all who took the longs!

I also mentioned Southern Copper Corporation (NYSE:SCCO) for those who prefer larger market cap companies. That trade produced a good profit of almost 39% in the same period. However, it doesn’t compare to the 55% profit from FCX even though it set the new record high at the $50.90 breaking above the previous long-term top ($49.82).

Below are the poll results where you voted for these two stocks last March. Continue reading "Freeport-McMoRan's Breakout Hits The Target"

Gold Update: Santa Claus Rally You Hoped For

Aibek Burabayev - INO.com Contributor - Metals


Two weeks before Christmas I posted the Gold & Silver update, where I asked you about your hopes for the traditional precious metals Santa Claus Rally at the end of 2017. The apparent answer those days was “No” as there was a severe weakness in the market and the price of the top metals was hitting another low. Let’s see in the poll results below what you were hoping would happen.

Chart 1. December 2017 poll results

Santa Claus Rally Poll
Poll courtesy of INO.com

And to no one's surprise, most of you expressed hope for a Santa Claus Rally. Bingo! A Christmas miracle came into the market the next day after the post was published to push the price of the top metals to the upside erasing almost all of the previous losses.

In the updated monthly chart below I would like to add a technical touch to this fairy tale. Continue reading "Gold Update: Santa Claus Rally You Hoped For"

S&P 500 Vs. Gold: Someone's Gain, Someone's Pain

Aibek Burabayev - INO.com Contributor - Metals


In May I recommended that gold bugs think about buying stocks for gold to enjoy the bullish momentum on the market. This call paid well as S&P 500 index almost gained 6 grams of gold (10%) since then.

In terms of dollars, the index did even better by hitting the projected target of $2650 set in the May chart. Back in those days the S&P 500 was flirting with the $2400 mark, and the target level looked so distant then.

In this post, I will update the S&P 500/Gold ratio chart and see if there is more room to the upside.

Chart 1. S&P 500 Monthly In Grams Of Gold

S&P 500 Monthly In Grams Of Gold
Chart courtesy of tradingview.com
Continue reading "S&P 500 Vs. Gold: Someone's Gain, Someone's Pain"