Tag: silver

Gold and Silver: Catch The Wave Up

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


Gold

4H Gold Chart
Chart courtesy of Tradingview.com

Last week, the Gold short trade was stopped above $1200. Price immediately broke back above the head and shoulders neckline beyond $1200 and that was it. Stops are a good risk management instrument, they should be set at once and should be tight to protect your capital.

Today I prepared for you a totally new idea with a fresh look. I combined a classic trend model with the Elliott Wave technique and it is shown according to the long-term model posted at the start of this month.

Gold charted a good upside impulse wave 1 (of A) from the March low at $1142 up to the intermediate high at $1224. Then a correction wave 2 emerged and price retraced down to the 50% Fibonacci area at $1184. Usually, the 2nd wave corrects down to 61.8%-99% of the 1st wave, but this time we have had only half of it which means that the market accumulated enough bullish momentum to continue higher. Continue reading "Gold and Silver: Catch The Wave Up" →

Gold and Silver: Short "Short" Play

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


Gold

4H Gold Chart
Chart courtesy of Tradingview.com

As seen in the above 4-hour chart, Gold has finished shaping a short term reversal pattern we've seen before, called a Head And Shoulders pattern. This pattern was confirmed on the RSI where the model is even more bearish as consequent lower highs were shaped.

The vertical neckline, highlighted in black, has been broken today below $1197 and this is a good sell signal. The target is the distance from the top of the head to the neckline, subtracted below the neckline. So the market aims for $1159 (highlighted in the red dashed horizontal line), which is $35 down from the current price at $1194. Continue reading "Gold and Silver: Short "Short" Play" →

Gold And Silver: The Bulls Failed

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


Gold - Classic Chart

Daily Gold Chart

Another profitable week for the bulls ended and so did the upward momentum. Price elevated for a decent $40 from my last post and almost touched the $1223 resistance area on Thursday, but failed below $1220 and then quickly retraced down for $15 to a $1204 close.

The rule of the game is set so that if you don’t keep buying to push the market up, sellers will appear and you would be buying all the way down. Once weakness appeared, the bears took the ball and started their own game, pulling the price down from recent highs. Monday brought more selling pressure to the game and the price is now below the first support level at $1190 (former resistance, highlighted in green). If we close below $1190, then I would not rule out price reaching $1170/$1131 supports. Sellers can benefit from the trade lower, with a stop set just above $1200 and take profit put above $1131. $20 of risk versus $55 of profit, a sound ratio. Continue reading "Gold And Silver: The Bulls Failed" →

How the Five Principles of Capital Allocation Can Mean Gold Mining Success

Posted on by admin

The Gold Report: The price of gold is flirting with a five-year low. Do you attribute this solely to the strength of the U.S. dollar, or are there other factors at work?

Ralph Aldis: There are other factors. Most important is the strength of the equity markets. Looking at a six-year window, we have seen, for the third time in the last hundred years, the highest returns for such a period. This happened before in 1929 and 1999. These phenomenal returns have been fueled not by fundamentals but rather by the U.S. Federal Reserve, which is trying to jumpstart the economy.

All this has taken people's eyes off gold, but it won't go on forever.

TGR: The bear market in gold equities is now four years old. This means lower gold production and less exploration. Gold production from South Africa has collapsed. Shouldn't lower gold production result in a higher gold price? Continue reading "How the Five Principles of Capital Allocation Can Mean Gold Mining Success" →

Metal Tactics: Gold And Silver

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


Gold

Price is still above the 61.8% Fibonacci retracement line on the monthly charts at the $1155 level.

Gold - Classic Chart

Daily Gold Chart

The bulls have scored $25 from the close of the week ending on March 13, 2015 and that sent Gold above the short term downtrend beyond $1180 (highlighted in red on the chart above), which started in January when the metal hit $1300. Continue reading "Metal Tactics: Gold And Silver" →