This Precious Metals and Mining Stock Chart Paints a Clear Picture

In this article, we are going to explain and show you an interesting pattern that has been slowly forming over the past year in the precious metals sector. This pattern along with our analysis point to a significant rally to start in the next 4 months for gold, silver, platinum, palladium, and miners.

Before we get into the details, below, it is important for every trader to step back and look at the bigger picture. It’s way too easy to get sucked into the markets movements, become an emotional trader, start losing a few trades, and second guessing your open positions.

We receive hundreds of emails every week from followers, and to be honest, this is one of the most powerful indicators available for letting us know when the majority of people are frustrated and have become emotional traders. Based on recent emails, their tone of the message, and market outlooks we can tell everyone is emotional and not seeing the market from a normal unemotional perspective.

There is no doubt it is easy to get caught up in the market and become an emotional trader if you don’t have a proven trading strategy for each type of market condition, advanced trading analysis, or trading guidance from a proven trading newsletter.

These past 30 trading days have been really tough to trade because the market is chopping around with huge one day moves back to back. Sometimes, its best to sit, watch and wait for some dust to settle before getting overly involved with new trades which is what we have done. Recently we traded YANG for a quick 8% profit, then we closed out two trades in TNA to profit 10.1%, then another 17.7% this month. Other than that, that’s about it. Now, with that said, things are about to get really exciting for us traders and we are getting ready for some new trades, both short term and longer term, looking forward many weeks and where the market should be headed.

Enough about all that emotional stuff, let’s jump right into the charts so you can see what we are excited about in this post!

Weekly Custom Precious Metals Weekly Chart 

The chart below shows several interesting data points and it’s fairly easy to see and understand.

Starting at the bottom of the chart you will see the purple line which is the Relative Strength Index (RSI). If we look back 4 years you can see a similar pattern unfolding which leads to a massive rally for precious metals back in 2016.

Knowing human behavior patterns don’t change, but rather repeat, it is likely we see another upside breakout and rally later this year. That does not mean, the price will go straight up, it simply means on average over time we should expect higher prices.

Before any new rally can take place, the precious metals sector must breakout above the pink falling trend line, just as it did in 2016.

If you didn’t notice already, we have posted our weekly cycle analysis for the precious metals complex. Over the next 6 – 8 weeks the sector should start to rally and try to break out. Again, this does not mean everything in the precious metals sector will rise. In fact, there are a couple areas you will want to stay away from. We share the best trade setups and alerts with our subscribers as they occur.

Weekly U.S. Dollar and Precious Metals Comparison Chart 

Here we show you on the chart the basic concept of how a falling dollar will push the price of gold higher, and how a rising dollar pulls metals lower on average. But this is not always the case. In fact, recent price action shows the dollar moving sharply higher while the precious metals sector moved sideways and higher. This looks like bullish divergence from their normal correlation and is likely caused by different global market dynamics injecting some new level of a fear that is funneling money into gold as a global safe haven.

Concluding Thoughts 

In short, we at The Technical Traders have been talking about the new bull market slowly setting up for precious metals since late 2017. As an investor and trader its always nice to be able to look forward knowing with a high probability what asset classes should be moving in and out of favor so we can position our capital accordingly.

If our analysis is correct once again, then over the next couple months this sector should be testing critical resistance to breakout and rally above the pink trend line. If you want to stay ahead of the markets and profit from our technical analysis then join the Wealth Building Newsletter now and get ready for this week!

53 years experience in researching and trading makes analyzing the complex and ever changing financial markets a natural process. We have a simple and highly effective way to provide our customers with the most convenient, accurate, and timely market forecasts available today. Our stock and ETF trading alerts are readily available through our exclusive membership service via email and SMS text. Our newsletter [sign up here], Technical Trading Mastery book, and 3 Hour Trading Video Course are designed for both traders and investors. Also, some of our strategies have been fully automated for the ultimate trading experience.

Chris Vermeulen

Gold – A Unique Repeat of the 2007 and How to Profit

Since Spring is in the air here are some colorful charts and show you where we feel the price of gold and stocks are within the current market cycles. Below are monthly charts of the SP500 index and the price of gold. The first chart shows a pattern that gold formed just before stocks hit all time new highs and the bear market started. The chart is a little noisy, lots of analysis, but we color coded each area to break it into clear bits size analysis. The chart shows you what happened and what is likely to happen again.

You Are Here in the Stock Market

This is the current monthly chart, and if you compare the price action with the above chart, you can’t help but think things are set up in a similar formation as 2007 – 2008.

What Does All This Mean?

It means, the stock market is nearing a significant top and all everyone’s long term buy and hold investments should be reviewed and prepared for a rebalancing later this year. Precious metals should do well this year, stocks should top out and for you to preserve their hard earned money cash is always king for those who don’t actively trade. But if you do trade or you are an active investor huge amounts of money can be made during times of increased volatility, precious metals, and falling stock market prices.

Today’s Stock Market Analysis – Wednesday April 28th

What an AWESOME DAY! All our positions rocketed higher with our most recent entry in SIL (silver miners) leading the way. We closed our TNA position to lock in 17.7% on the second portion of that trade. Yes, we do feel the markets will run higher, but we also like to lock in the quick, easy money trades like TNA especially when the overall market is looking and feeling a little top heavy for a day or three. The chart below of the SP500 index paints a color picture of what I feel will unfold in the very near term.

In Conclusion

Our analysis of the markets was DEAD ON. We called the 2678 level on the ES as a key resistance level to watch before any breakout to the upside would potentially happen. We also called this market bottom nearly three weeks ago on March 28, 2018 and we locked in 17.7% today with our subscribers. We have been nailing these market reversals with incredible accuracy all year and we are just getting started with our Advanced Dynamic Learning systems [preview that system here] we have developed.

The bottom line is that smart traders and investors look into the future and position their money where they feel it will increase in value the most. We say this all the time, which is money is continually looking for the best ROI and flows from one asset class to another as the market evolves. With potentially another major financial crisis forming, war, and a bear market in stocks we do not doubt that we are about to experience a huge rebalancing of money over the next few years, and I feel precious metals may be the next little hot pocket for trades.

So if you want our pre-market video analysis showing you where the markets, oil, and gold are headed every day and want out ETF trade alerts be sure to join the Wealth Building Newsletter Here!

Chris Vermeulen
The Technical Traders

Free Webinar: Your Second Chance for the Marijuana Boom in 2018

Our trading partner legendary speculator Doug Casey invites you to take part in the FREE "Pot Stock Millionaire Webinar". This free Summit will guide us through how we can take advantage of the coming second marijuana boom.

Doug is up $1 million dollars with just ONE tiny pot stock, a 1,900% gain. And now Doug and his team have found 5 new pot stocks that will brings us those same profits.

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The Pot Stock Millionaire Summit with Doug Casey, Nick Giambruno and Justin Spittler takes place Thursday, April 26th at 8 p.m. Eastern Time. Since this is hosted on a private website you must pre register and details for access will be emailed to you.

And the cost to you? Zero....It's all FREE!

If you missed out on the first wave of marijuana investing don't miss your second chance to become a Pot Stock Millionaire in the Marijuana Bull Market of 2018. The 2018 boom is expected to be 8 times bigger than the first.

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•   How famed speculator Doug Casey became a marijuana millionaire with one penny pot stock

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And this is just a small sample of the exclusive information that Doug and the team will share during this event.

Here’s What You’ll Get When You Sign Up Today

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And Doug Casey will break down how he became a marijuana millionaire with a penny pot stock and why he sees bigger opportunities in today’s marijuana boom for those who get in now.

Access to a brand new video training series: Released for the first time exclusively for this event, these 3 trainings will show you:

• Why everyone who thinks the biggest gains in marijuana have already been made are dead wrong. We’re actually at the very start of the biggest marijuana mania in history.

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• How marijuana stocks are delivering similar gains to Bitcoin and cryptocurrencies… but are much safer and easier to buy. And we’re actually in an earlier stage of the marijuana boom than we are in Bitcoin.

• Why regardless what the federal government does, marijuana legalization is a runaway train and the best opportunity today to turn a couple of hundred dollars into a fortune.

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You’ll be able to watch these short, information packed videos right on your computer or phone.

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During the first marijuana mania, the best pot stocks averaged peak gains of 24,000%. And that was with just two states (Washington and Colorado) legalizing recreational pot. Now that it’s legal in California, and Canada is set to go recreational this June, we’ll see the biggest marijuana profits in history from this bull market.

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Adaptive Dynamic Learning Predicts Massive Market Bottom

Our research team at Technical Traders Ltd. has been hard at work trying to identify if this recent downside price move is more concerning or just a rotational move. The recent global news regarding the US/China trade tariffs as well as the fallout that started nearly two weeks ago in Technology with Facebook, Snap and others has spooked the markets. Our additional research shows that China and Asia are extremely fragile at the moment and the global Central Bankers as well as the Real Estate market could be key to any future unraveling of the markets.

Yet, at this time we believe our predictive modeling systems and analytical systems are indicating a strong market recovery is just days away. As we have discussed earlier, capital is constantly searching for the safest and most reliable ROI throughout the planet at all times. We believe the current market environment will show signs that stronger, more established economies will continue to benefit from capital migration as a result of this new wave of uncertainty plays out. The US DGP growth rate over the past 2 years has been exceptional – increasing over 200% from 2015-2016 averages of 1.48%

As you might have read from our China/Asia Implosion research, there are many factors at work currently in the markets and the one thing that is a constant is consumer and debt cycles. Additionally, we have been relying on our cycle analysis, Adaptive Fibonacci modeling system and our incredible Adaptive Dynamic Learning modeling system (ADL), for much of our analysis throughout the end of 2017 and early 2018. Today, we are going to share what we believe to be one of the most amazing analytical calls of this year – a potentially massive rally in the US markets.

First, our Weekly Fibonacci modeling system is still showing strong bullish signs while indicating recent price rotation is below bearish trigger levels. Because of this last component, we are still concerned that unknown factors could derail any price recovery that our advanced modeling systems are predicting. Yet, we believe the core elements of Capital Migration and the fact that capital will chase the greatest ROI and safest environment for future liquidity and growth indicate that the US markets are the only game in town. The newly established price channel can be clearly seen in the chart below.

As we consider the fragility of the global markets as well as the potential that foreign and domestic capital will likely be migrating into the US Equity markets in an attempt to maintain ROI and liquidity that is simply unattainable in other global markets. Risks are starting to stack up in many foreign markets with Brexit, debt issues, cycle rotations and other issues. Yet, the US markets have recently been unleashed in terms of growth expectations and regulations.

This S&P Daily chart showing our ADL predictive price modeling system is clearly showing the price anomaly that is currently setting up. Prices are been pushed much lower – below our price expectations shown as DASHES on the chart. Yet we need to pay attention to the dramatic price reversal setting up to the upside. Without our ADL price modeling system and the ability to identify these types of setups, we would have little knowledge that this type of dramatic price increase is about to hit the US markets.

Additionally, when we compare the ES chart (above) to this NQ chart (below), we can see another price anomaly that is setting up in the US markets. These types of price anomalies are quite unique in the sense that they represent a price disconnect that usually results in a violent and dramatic price reconnect. In other words, when these types of price anomalies happen, price is driven outside normal boundaries of operation for periods of time, then it recovers to near the projected price levels – just like it did in early February 2018 with a dramatic downside price correction.

Lastly, this SPY chart below is confirming all of our price analysis with a very clear picture of the price anomaly that is currently setting up. External news factors have driven the current price to well below the expected ADL levels and setup what may turn out to become a Double Bottom in the process. Yet, the most critical part of all of this is the potential of a massive 10% or greater price rally over the next 3 to 10 days.

Many people simply don’t believe our ADL system can be this accurate, yet we urge readers to visit www.TheTechnicalTraders.com to review our research articles from late 2017 and early 2018 to see for yourself how well it has worked out so far. You don’t want to miss this move and what follows. This move will be a huge opportunity as our analysis is showing the potential for 8 to 12+% price advances over the next 30 to 60 days.

We are writing this message to alert all of our members and followers that we are uniquely positioned to take advantage of this move while others are preparing for the potential price decline that is evident by move traditional technical analysis modeling system. If you want to learn how to stay ahead of these moves and profit from this type of adaptive predictive price modeling, then please visit our website to learn more about our stock and ETF service for active traders and investors.

Our articles, Technical Trading Mastery book, and 3 Hour Trading Video Course are designed for both traders and investors to explore the tools and techniques that discretionary and algorithmic traders need to profit in today’s competitive markets. Created with the serious trader and investor in mind – whether beginner or professional – our approach will put you on the path to win. Understanding market structure, trend identification, cycle analysis, volatility, volume, when and when to trade, position management, and how to put it all together so that you have a winning edge.

GET OUR ETF ALERTS TODAY!