Metals Nearing Critical Momentum For New Parabolic Rally

While the US stock market has rallied over the past 5+ weeks,
Gold has stalled near $1730 to $1740.  We
issued a research post suggesting the GREEN Fibonacci Price Amplitude Arc was
acting as major resistance and once that level is breached, we expect a big
upside move in Gold.  Currently, Gold has
reached just above the Green Price Amplitude Arc and this week may be a
critical moment for both Gold and Silver in terms of a momentum base.

Gold has continued to move high in a series of waves – moving
higher, then stalling/basing, then attempting another move higher.  This recent base near $1740, after the deeper
price rotation in February/March, confirms our 2018/2019 predictive modeling
research suggesting that $1750 would be a key level in the near future.  Part of that research suggested once $1750 is
breached, then a bigger upside move would take place targeting levels above $2400
– eventually targeting $3750.

April 25, 2020: Fibonacci Price Amplitude Arcs Predict Big Gold Breakout

GOLD FUTURES WEEKLY
CHART

This consolidation after the COVID-19 event near $1750 is a very real confirmation for our researchers that the upside breakout move is about to happen.  How soon?  It could begin to break out next week of the following week?  How high could it go?  Our upside target is $2000 to $2100 initially – but Gold could rally to levels near $2400 on this next breakout move.

Before we continue, be sure to opt-in to our free market trend signals 
before closing this page, so you don’t miss our next special report!

SILVER FUTURES
WEEKLY CHART

While Gold has been consolidating near $1740, Silver has exhibited an incredible upside price move after a very clear Flag/Pennant formation (highlighted in YELLOW on the chart below).  The current upside price rally in Silver appears as though it may breach the MAGENTA downward sloping trend-line and this breakout move may prompt a rally to levels near or above $21 over the next few weeks. 

Eric Sprott is very excited about silver and miners. Also, he talks about the demand for physical delivery which is way out of whack and how something could finally give which would be metals go parabolic.

We’ve been suggesting that metals will transition into a moderate parabolic upside price trend as the global markets deal with concerns related to economic activity, debt, solvency, and continued operational issues.  For skilled technical traders, this setup in Metals may be a very good opportunity for skilled technical traders to establish hedging positions in ETFs or physical metals before the breakout really solidifies.

Concluding Thoughts:

Longer-term, we believe metals could continue to rally for quite a while, yet we understand skilled technical traders want to time entries to limit risks.  We believe skilled technical traders should consider hedging their portfolio with a moderate position in Metals/Miners at this time – allowing traders to trade the remaining portion of their portfolio in other sectors/stocks.

If the US/Global markets continue to struggle to move higher
over the next 60 to 90+ days, metals/miners should continue to push higher –
possibly entering a new parabolic upside price move.  The deep washout low in Silver was an
incredible opportunity for skilled traders to jump into Silver miners and
Silver ETFs at extremely low price levels. 
Now, with Silver at $18.40, it’s time to start thinking about $21+
Silver and $2100+ Gold.

Now is the time to really tune up your trading and get ready for some really great trading opportunities. 

You don’t have to spend days or weeks trying to learn my system.  You don’t have to try to learn to make these decisions on your own or follow the markets 24/7 – I do that for you.  All you have to do is follow my research and trading signals and start benefiting from my research and trades.  My new mobile app makes it simple – download the app, sign in and everything is delivered to your phone, tablet, or desktop.

I offer trading signals for active traders, long-term passive investors, and wealth/asset managers.  Each of these services is driven by my own experience and my proprietary trading systems and modeling systems.  I have a small team of dedicated researchers and developers that do nothing but research and find trading signals for my members.  Our objective is to help you protect and grow your wealth.

Please take a moment to visit www.TheTechnicalTraders.com/tti to learn more about our passive long term investing signals, Also, get our swing trading signals here www.TheTechnicalTraders.com/ttt.  I can’t say it any better than this…  I want to help you create success while helping you protect and preserve your wealth – it’s that simple.

Chris Vermeulen
Chief Market Strategist
Founder of Technical Trader Ltd.