The Big Bounce In Gold, Silver, Oil & Nat Gas
Last week we saw commodities sell down then put in solid bounce, which allowed us to generate new pivot lows for drawing support trend lines. This is the exact type of price action I have been waiting for. Natural Gas did nothing special but crude oil put in a very strong bounce and is now trading at a double resistance level which is explained later in the report.
The Precious Metals Sector
Gold stocks sold down the first half of the week but then put in a solid bounce Thursday and Friday along with bullion prices. As you can see from this chart it has three reverse head & shoulders patterns and this type of pattern is bullish. You can see the patterns in March, then April, and we are currently at the final stages of the third H&S. If the charts do what they are telling us then we should see prices surge higher over the next 1-2 weeks.
This chart shows my simple signature setup. I focus on several chart patterns, tools and techniques like trend lines, MACD momentum, Elliot Wave, candle patterns and strict money/risk management rules.
Gold Bullion Prices - GLD ETF Trading
We took advantage of last weeks intraday and daily price action. Lets watch the market unfold…
Silver Bullion Prices - Silver ETF Trading
Silver is in the same boat. Looking bullish and ready to rocket higher.
Natural Gas Prices - Natural Gas ETF Trading
Nat gas has taken almost everyone's money that I have talked to, which means it should be bottoming soon.
Have you ever bought a stock, watched it tick higher and all of a sudden see prices drop taking out your stop order or selling down to a point here you cannot take the pain making you exit for a loss. Only to see prices reverse and move in the direction of the trade you just exited but this time without you!
If this happens then not only is your trading strategy/model needing some tweaking but you also do not understand how the markets REALY work. The floor traders (market makers) are taking your money and it's as easy as taking money from a baby. There are tricks the market makers do on a daily basis with stocks, commodities etc… in order to make as much money as possible off the little uneducated trader. I will be sending out a special report about this in the next few weeks.
Crude Oil Prices - Crude Oil ETF Trading
Crude oil is currently trading at resistance. We could see a sharp move lower again or a sharp breakout to the up side. We continue to wait for a breakout and low risk setup in oil.
The Commodity Bounce Conclusion
Last week was exciting with precious metals providing trading opportunities for us. We saw one of our Golden Rocket setups surge 55%. Gold stocks are becoming the flavor for investors as they anticipate gold bullion prices to spike in the coming months. Crude oil and natural gas are not providing any setups at this time. We are currently watching and waiting for some low risk setups.
If you have any questions please feel free to send me an email. My passion is to help others and for us all to make money together with little down side risk.
Chris Vermeulen, founder of AlgoTrades Systems., is an internationally recognized market technical analyst and trader. Involved in the markets since 1997. Chris’ mission is to help his clients boost their investment performance while reducing market exposure and portfolio volatility. Chris is also the founder of TheGoldAndOilGuy.com, a financial education and investment newsletter service. Chris is responsible for market research and trade alerts for of its newsletter publication. Through years of research, trading and helping thousands of individual investors around the world. He designed an automated algorithmic trading system for the S&P500 index, which solves his client’s biggest problem related to investing in the stock market: the ability to profit in both a rising and falling market. He is the author of the popular book “Technical Trading Mastery – 7 Steps To Win With Logic”. He has also been featured on the cover of AmalgaTrader Magazine, Futures Magazine, Gold-Eagle, Safe Haven,The Street, Kitco, Financial Sense, Dick Davis Investment Digest and dozens of other financial websites. Chris is a graduate of Seneca College where he specialized in business operations management.