Sunday, October 30, 2016

Gold within 2 channels and halfway down the correction

Gold is within a broad ascending channel and a smaller (and more recent) descending channel.It seems it is now in a wave B towards somewhere between 1285-1300 where probably will bounce and head down towards 1220

Happy trading!

Sunday, October 23, 2016

An interesting week ahead of us for gold miners

This week will be an interesting week for gold miners as many of them are reporting earnings.
Current technical picture for GDX:

And don't forget gold

Wednesday, October 19, 2016

SPX: Approaching a significant time-price line

S&P500 is approaching a significant time-price line.

If it fails to bounce at that line then things are starting to get ugly for bulls.Below the red line bears can smile again. 

Tuesday, October 18, 2016

GDX : approaching resistance and is already overbought

GDX is in a correction mode since early August.Currently GDX is approaching a descending resistance trendline and is already overbought.A bounce lower is very possible.If GDX breaks above resistance then the next target is 27 at the end of the month.

Happy trading!

Thursday, October 13, 2016

Gold within 2 channels and some crucial decision price-time points...

Gold is within a broad ascending channel and a smaller (and more recent) descending channel.
Gold price currently hovers just above the lower band of the descending channel.
A possible significant decision point for gold is  ~1230 at around US general election date.
Another significant decision point  1303  at around Christmas.

Happy trading!

Thursday, October 6, 2016

Silver: Short term oversold

Silver is currently approaching a channel support while being significantly oversold.

Expect a relief bounce towards 18.5

Saturday, October 1, 2016

Market at deep stall... and spring 2015 deja-vu!

Good morning lab rats!
Back in mid-August we warned you that market was approaching stall speed(Market (SPX) is dangerously approaching stall speed).
Three weeks later market experienced a sharp correction.
Yesterday our model just flashed red.
Unless the market moves spectacularly higher in the next couple of weeks, our model will probably confirm yesterdays signal.
So what are the implications.
According to the current data, market is in a deep stall situation and probably sooner rather than later will succumb to gravitational pull.
Our hand is on the sell to close button...In case we have a confirmation of our signal in the next couple of weeks, we are going to hit it and remain out of the market.
Market conditions these days are eerily similar to market conditions back in spring 2015.

An ascending wedge is forming with quickly deteriorating market internals...
It seems like the ascending wedge will top out at 11100 (Nyse composite) around US elections.
After that and if history rhymes market will initially move towards 10000.
Sorry bulls...For the time being these are the facts...