Author: Aibek Burabayev

Platinum Could Restore Its Supremacy Soon

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals - Platinum


Last October I focused on the rare case when the price of palladium, for the first time in many years, could surpass the usually dominant platinum price. Both, common sense and chart analysis of the palladium price suggested that the triumph of this metal could be temporary. In the charts below, we can see if this conclusion turned out to be right.

Chart 1. Platinum/Palladium Ratio Monthly: Half-Half

Platinum
Chart courtesy of tradingview.com

This time I would like to start with the chart of the relative strength of the two metals which is clearly traceable through the platinum/palladium ratio. This ratio is falling sharply from the 2009 high at the 6.09 oz showing the dramatic weakness of platinum compared to palladium. In the chart above, I only show you the period when the drop started to decelerate, and the trend turned flat. Continue reading "Platinum Could Restore Its Supremacy Soon" →

Don't Miss Another EUR/USD Rally

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals - EUR/USD


I spotted a promising trading opportunity in the Foreign Exchange market, and I would like to share it with you today as the setup is ready.

Before that, I would like to give you some insight about the global map for the pair of the single currency against the king currency (EUR/USD) to let you know where other opportunities could emerge as time goes by.

Chart 1. EUR/USD Monthly: Make It Or Break It

EUR/USD
Chart courtesy of tradingview.com

On the chart above, we can see the magic power of trends highlighted in blue for the upmove and in red for the current long-lasting correction. The former already took 115 months to unfold exceeding the period of the preceding upmove (93 months) significantly. This is what we always should bear in mind about the nature of corrections – they last longer than the moves they retrace. Continue reading "Don't Miss Another EUR/USD Rally" →

S&P 500 Consolidates, Is Another Drop Ahead

Posted on by Aibek Burabayev

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

Posted on by Aibek Burabayev

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" →

Lithium Play: SQM's Consolidation Offers Opportunity

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals - lithium investing


In this post, I will share with you an upcoming lithium investing opportunity in the lithium industry through the stock of the well-known company traded on the NYSE with a hard to spell name. It’s Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM).

Among other useful things it produces lithium carbonates for various applications, such as electrochemical materials for batteries; lithium derivatives; supplies lithium hydroxide for the lubricating greases industry, as well as for cathodes for batteries; and sells lithium chloride solutions. Its lithium products are marketed under the QLithiumCarbonate, QLithiumHydroxide, and QLubelith brands.

Recently, Moody's Investors Service affirmed on January 24th Sociedad Quimica y Minera de Chile S.A.'s (SQM) Baa1 senior unsecured ratings and changed its rating’s outlook to stable from negative as the company reached an agreement to settle the long-term dispute with the Chilean Production Development Corporation on 17 January 2018. The resolution will positively impact production growth prospects for SQM's Salar de Atacama operations (half of the revenues) during the remainder of the contract, which expires in 2030.

Let’s start our analysis from financial highlights. Continue reading "Lithium Play: SQM's Consolidation Offers Opportunity" →