- Posted by PeterLBrandt on August 21st, 2014 at 12:02 pm
Silver at 1304, Gold at 1075.
I know it is hard to believe. Personally, I am generally a Gold bull. I want the H&S bottom in Gold to complete, followed by a run to $2,000. But, a very bearish case can be made for the precious metals. First, the H&S bottom bullish case. The H&S pattern is a most reliable chart configuration — in fact, the most reliable of all classical chart patterns. A decisive close above 1,400 in Gold would be extremely constructive.
Yet, whenever a clear H&S pattern develops there is a possibility for a H&S failure. A close below the 1240 right shoulder low in Gold would be an indication that the H&S bottom is failing. The target would be 1074. A close below the late Jul low of 1281 would not be constructive — and, in fact, would suggests that the bears have control of the market. The market appears to be rolling over today. I will read a close below 1280 as a sell signal.
The same chart construction can be seen in $GDX, the gold miners ETF. A decisive close above 28.05 would complete the H&S bottom. A decisive close below 21.93 would complete the H&S failure.
Then there is Silver — which, in my opinion is not even a precious metal in the true sense. I am constantly amazed by the number of people who think t he world is running out of Silver. Might they have believed the world was running out of carbon-based energy 10 or 15 years ago? These people also believe that the Gold/Silver ratio should be 20 to 1 just because some king of Spain declared it to be so some 500 years ago. I have commented numerous times during 2014 that Silver could be forming a descending triangle formation. This pattern generally has bearish implications. The top completed in Silver in Apr 2013 established an yet unmet target of 16.70. A decisive close below 18.00 would extend the downward target to 1300.
So you want to be Jack Schwager’s next Market Wizard — Here is your chance to prove yourself
Posted by PeterLBrandt on August 20th, 2014 at 9:17 am
Do you want to prove yourself as a great trader? If so, it is time to put up or shut up! My friend Jack Schwager […]
The Asian Tiger’s Roar is Getting Louder
Posted by PeterLBrandt on August 19th, 2014 at 10:49 am
Investors should overweight Asia Note: I am a classical chartist. I do not follow macro economic factors. My opinions on equities and futures […]
A lesson in charting — great trendlines often begin at a price gap
Posted by PeterLBrandt on July 30th, 2014 at 11:35 am
S&Ps are in a very well-defined price channel — a decline toward 1900 is possible Beginners in the art of price charting desire to […]
Asia — about to go parabolic?
Posted by PeterLBrandt on July 24th, 2014 at 1:45 pm
The charts of Asian equity markets are extremely constructive across the board I have blown the horn of Asian stock markets repeatedly in this […]
Intel — On its way to at least $57, then $78
Posted by PeterLBrandt on July 18th, 2014 at 9:27 am
The long-term charts present an extremely bullish scenario The advance in June 13 represented a dramatic event — $INTC completed a 12+ […]
An update on Gold charts — has the bull been injured?
Posted by PeterLBrandt on July 15th, 2014 at 9:17 am
Bias remains long-term bullish Gold experienced a sharp break on Monday. In the process it stopped me out of some long futures positions. Yet, […]
Asia — The Tigers are Ready to Roar
Posted by PeterLBrandt on July 7th, 2014 at 3:29 pm
The price charts of Asian stock markets suggest that a significant advance has started or will start soon I will let the charts […]
Have precious metals begun a new bull market?
Posted by PeterLBrandt on June 19th, 2014 at 3:52 pm
Gold is forming a possible massive H&S bottom On Sunday, June 15, I issued a Tweet that Gold was forming a possible H&S bottom pattern. […]
Chart of the Day — MakeMyTrip Limited
Posted by PeterLBrandt on June 11th, 2014 at 3:36 pm
Buying MakeMyTrip ($MMYT) might just make your year Chart is completing a massive continuation chart pattern Whenever the general market is under pressure (like […]
Peter Brandt entered the commodity trading business in 1976 with ContiCommodity Services, a division of Continental Grain Company. From his start in the commodity industry, Peter's goal was to trade proprietary funds. But, he first needed to learn the business. More »