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Precious Metals Setting Up Another Momentum Base/Bottom

Commodities / Gold & Silver 2019 Sep 20, 2019 - 07:40 AM GMT

By: Chris_Vermeulen

Commodities

Just as we predicted, precious metals are setting up another extended momentum base/bottom that appears to be aligning with our prediction of an early October 2019 new upside price leg.

Recent news of the US Fed decreasing the Fed Funds Rate by 25bp as well as strength in the US stock market and US Dollar as eased fears and concerns across the global markets.  These concerns and fears are still very real as the overnight credit market has continue to illustrate.  Yet, the precious metals have retraced from recent highs and begun to form a momentum base which will likely become the floor for the next move higher.


The one aspect that many traders don’t grasp just yet is that the US market could continue to push higher, just as they’ve done over the past few months, while precious metals continue to push higher, just as they’ve done over the past few months.  The reality is the fear and greed driving the upside price move in metals is related to foreign market concerns (China/Asia, Europe/EU/BREXIT, Arab/Iran/Israel, and others).  The true fear is that some type of war or economic event will start while the global markets are fragile.  The recent news that the overnight Repo Market is seizing is another indication that the global credit market is very fragile.  What will it take to launch metals higher?  We believe the world is waiting for this next event to happen while this momentum base continues to set up.

Gold Daily Chart

This Gold Daily chart highlights the momentum base setup between $1480 and $1525.  Any entry below $1500 is a relatively solid entry point for skilled technical traders.  The next upside target based on our Fibonacci price modeling tool is $1795.  Thus, the real upside move potential at this point is another +20% for Gold.

Silver Daily Chart

Silver is setting up a similar momentum base pattern after reaching levels just below $20 per ounce.  We still believe the early October breakout date is relevant and we believe the next upside target will be between $21 to $24 in Silver.  Any entry level below $17.60 is a solid area for skilled technical traders preparing for the next upside price leg.

There has been a lot of talk from analysts and researchers that Gold could rally well past $5,000 if the markets collapse.  One analysis came out recently and suggest Gold could rally above $23,000.  We are a bit more conservative with our initial upside target of $3,750.

The bottom line is you really don’t want to miss this opportunity in the precious metals markets once it forms a bottom and starts to rally.  This recent price rotation is a gift for skilled technical traders.  If you were to take a minute and really consider how precious metals would react to a foreign market credit collapse on top of the potential for a collapsing economic outlook resulting from the credit collapse, you’ll quickly understand that trillions of dollars will be seeking safety and security in the metals markets in due time.

My Wealth Building ETF Newsletter will hold your hand, and tell you what trades to take as these events unfold including the entry price, price targets, and most importantly stop prices. If you like what I offer ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis. Join Now and Get a Free 1oz Silver Round or Gold Bar!

Chris Vermeulen
www.TheTechnicalTraders.com

Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and is the author of the book: 7 Steps to Win With Logic

Through years of research, trading and helping individual traders around the world. He learned that many traders have great trading ideas, but they lack one thing, they struggle to execute trades in a systematic way for consistent results. Chris helps educate traders with a three-hour video course that can change your trading results for the better.

His mission is to help his clients boost their trading performance while reducing market exposure and portfolio volatility.

He is a regular speaker on HoweStreet.com, and the FinancialSurvivorNetwork radio shows. Chris was also featured on the cover of AmalgaTrader Magazine, and contributes articles to several leading financial hubs like MarketOracle.co.uk

Disclaimer: Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned. Technical Traders Ltd., its owners and the author of this report are not registered broker-dealers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an investment based solely on what you read in an online or printed report, including this report, especially if the investment involves a small, thinly-traded company that isn’t well known. Technical Traders Ltd. and the author of this report has been paid by Cardiff Energy Corp. In addition, the author owns shares of Cardiff Energy Corp. and would also benefit from volume and price appreciation of its stock. The information provided here within should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. Technical Traders Ltd. and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. Lastly, the author does not guarantee that any of the companies mentioned in the reports will perform as expected, and any comparisons made to other companies may not be valid or come into effect.

Chris Vermeulen Archive

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