In the blink of an eye, we have reached the middle of the year, and it’s time to see how our third Pendulum experiment worked out.
I’ll start with the poll results from 6 months ago that show your bets.
Graph courtesy of INO.com
The majority of you bet on Silver, and you won as you can see in the chart below. It looks like the Nikkei index is not your star whatsoever. Continue reading "Pendulum Experiment No.3: An Early Victory!"
Last week time ran out for the clone of the previous consolidation in the gold chart that I posted in April. I’ve updated the chart with a snapshot of the experiment’s result.
Chart courtesy of tradingview.com
All experiments are some sort of magic as we have an idea in our mind and try to apply it in the real world through an uncountable series of experiments to reach the desired result. But any result is a step forward to better understand what is going on in the real world. And the many side effects can bring us something genuinely new, especially when the experiment brings you an unexpected result. Continue reading "The Gold Clone: Time's Up"
It’s amazing how an updates’ timing can coincide with an interesting chart pattern that’s shaping up or trendline reactions. This time I spotted a Symmetric Triangle pattern as I was preparing this monthly update. I am happy to share it with you in the chart below.
Chart courtesy of tradingview.com
The market got stuck for more than one year inside of the black Symmetric Triangle pattern. It shows that neither bulls nor bears could change the balance of the market as price volatility on the monthly chart faded and we reached the apex of the triangle where the trendlines converge. Continue reading "Silver Monthly: Symmetric Triangle"
Monthly charts show major price development and are crucial in determining the long-term trends. It is slow to change and I update it once the price reaches the important level or makes a breakout or reversal. The last time I updated the monthly chart was last August when the price reached the multi-year trendline resistance.
I had assumed three possible scenarios of price action and the least interesting second scenario of consolidation plan worked. I had set the margins of consolidation within the $1100-1400 range and some readers thought it was too wide, but as you can see now it played out perfectly – the actual range is $1122-1367 for the past period.
The trendline resistance falls lower and lower in the long run and now the price meets it again. That’s why added an updated monthly chart below.
Chart courtesy of tradingview.com
This time we have the same situation as in the past year. Last July the price had tried to push through the black resistance line, but failed and there was hope that in the next month the breakup could be done and we all know what happened next. Last month the price also tried to overcome the barrier but failed. Nevertheless, the hope is still there as always in such situations. This month’s candle tells us that the price first dropped down from the open at $1267 to $1214 low and is now reversing losses and is yet to cover them all. Continue reading "Gold Faces Multi-Year Resistance Again"
Some things become more obvious when you change your point of view. Some decisions are easier to make when we change the measure of value. And today I would like to share with you the gold bug’s view of the stock market.
Chart courtesy of tradingview.com
The chart above represents the price dynamics of the S&P 500 in grams of gold. I used grams not ounces to make the chart more readable. You can do the same by dividing the S&P 500 value to the price of gold in troy ounces and then multiplying it by 31.1035. Continue reading "Gold Bugs Should Think About Buying Stocks"
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