{"id":151920,"date":"2019-07-22T09:00:12","date_gmt":"2019-07-22T13:00:12","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=151920"},"modified":"2019-07-22T06:56:16","modified_gmt":"2019-07-22T10:56:16","slug":"what-could-the-next-gold-rally-look-like-part-i","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/07\/what-could-the-next-gold-rally-look-like-part-i\/","title":{"rendered":"What Could The Next Gold Rally Look Like? Part I"},"content":{"rendered":"
July 22, 2019<\/div>
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By TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

I have been going over the past data to attempt to identify future price targets and to help traders understand the true potential for the current precious metals price rally.\u00a0 We\u2019ve been sharing our data and research with you for many months are pleased to continue to share our predictive modeling system\u2019s outputs and data.\u00a0 Today, we wanted to play a bit of \u201cwhat if\u201d with the data in an attempt to relate just how explosive this move in precious metals may be over the next 6 to 12+ months.<\/p>\n

Given our belief that precious metals prices will hold last weeks breakout to the upside and that Gold will rally in a parabolic price mode, we have attempted to identify how Silver would react given the price advance of Gold and the historic price ratio between Gold vs. Silver.<\/p>\n

A number of pricing dynamics are taking place throughout the global stock markets and the historical measures of price relationship in advancing and declining markets could help us better understand the potential upside for Silver as the price of Gold continues to rally.\u00a0 Here we go with our \u201cwhat if\u201d results.<\/p>\n

Gold Fibonacci Price Amplitude \u2013 Weekly Chart<\/h3>\n

You may remember when we were calling for Gold to rally from $1200 to just above $1300 earlier this year?\u00a0 We warned that once this move completed, a pause and pullback back below $1300 would set up a \u201cMomentum Base\u201d near April 21<\/a> that would become the launchpad for a much bigger move to the upside.\u00a0 Now that we\u2019ve seen this setup complete almost exactly as we predicted months in advance, we are waiting for the price to breach the Fibonacci Price Amplitude Arc that is currently acting as resistance for Gold (see the chart below).<\/p>\n

Once this level is broken, we believe Gold will rally to levels near or above $1560 and attempt to set up another \u201cMomentum Base\u201d somewhere between $1560 and $1640.\u00a0 This price level represents a key price zone where multiple price inflection points align and where a larger Fibonacci Price Amplitude Arc exists.\u00a0 It is very likely that price will run into resistance near this zone \u2013 although it may become very brief price resistance.<\/p>

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Let\u2019s assume that Gold could target various upside price levels in the near future and that Gold may attempt to reach levels just below $2000 before the end of this year (2019).\u00a0 We\u2019ve broken our research into price segments that will help us understand and breakdown Gold price advancement levels for future reference.\u00a0 We\u2019ve selected : $1650, 1750, 1850 & 1950 price levels for our research.<\/p>\n

The Gold\/Silver ratio chart, below, highlights the incredible rotation we\u2019ve recently witnessed as Silver exploded higher last week.\u00a0 Gold followed this move higher roughly 24 hours later.\u00a0 The ratio between the price of Gold vs. Silver was at historical highs near 93 just a few days ago.\u00a0 Currently, it is at 88.1 \u2013 after Silver rallied to help close the price gap between the two metals.\u00a0 As you can also see from this chart, historical normal price levels are much closer to the 45 to 65 range.<\/p>\n

What happens when this Gold\/Silver ratio value becomes extended is that Gold holds more value than Silver.\u00a0 Silver is a precious metal that is often overlooked because Gold is the primary focus of metals traders.\u00a0 Yet, when a panic hits the global stock markets and Gold begins to move dramatically higher, Silver becomes an incredible opportunity as traders pile into Silver expecting it to close the price ratio gap quickly.<\/p>\n

How big is this price disparity between Silver and Gold?\u00a0 How much more will Silver potentially rally if Gold hits certain key upside price targets?\u00a0 You should take a look at my article talking about the best metal to own for 2019 and beyond here<\/strong><\/a>. I compare gold, silver, platinum, and palladium. Let\u2019s find out and explore some really incredible opportunities.<\/p>\n

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CONCLUDING THOUGHTS:<\/strong><\/h3>\n

Using special reference points, the current ratio level, and our expected ratio level, we can determine that for every drop of 5.0 points in the ratio level, the price of Silver should increase by 6.5% to 7.5%<\/em><\/strong> to the price of Gold.\u00a0 Therefore, if Gold trades higher to $1500 and the ratio drops from 88 to 83, Silver should be trading at a level of $18.29.<\/p>\n

We determined this ratio relationship process by identifying \u201canchor points\u201d within the historic ratio chart, mapping out price levels that occur at these levels in advancing and declining metals markets, then mapping the corresponding ratio relationships so we could attempt to make these types of predictions.<\/p>\n

Just wait to and see our PART II the shows what silver should do just reach a normal price ratio in tomorrows article!<\/em><\/h4>\n

I love to take on these types of challenges and to play \u201cwhat if\u201d.\u00a0 The idea that we may find some unknown or unseen opportunity for traders and investors is very exciting.\u00a0 We\u2019ll share more of our research in Part II of this article and we\u2019ll show you exactly what we expect to happen in the metals markets as the ratio continues to \u201crevert\u201d.<\/p>\n

In short, the opportunities for skilled technical traders over the next 16+ months is incredible.\u00a0 Huge price swings, incredible trends, big rotations and we could see nearly 300%+ profits to be had if you know what to trade and when.\u00a0 These types of opportunities are perfect for skilled technical traders like us and we want to help you prepare for and trade these opportunities.<\/p>\n

This bear market for stocks and the new bull market for metals has been a long time coming, but finally, almost all the signs are showing that\u00a0it\u2019s\u00a0about to start. As a technical analyst since 1997 having lost a fortune and making a fortune from bull and bear markets I have a good understanding of how to best attack the market during its various stages.<\/p>\n

Be prepared for these incredible price swings before they happen and learn how you can identify and trade these fantastic trading opportunities in 2019, 2020, and beyond with\u00a0our\u00a0\u00a0Wealth Building & Global Financial Reset Newsletter<\/strong>.\u00a0 You won\u2019t want to miss this big move, folks.\u00a0 As you can see from our research, everything has been setting up for this move for many months \u2013 most traders\/investors have simply not been looking for it.<\/strong><\/p>\n

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I can tell you that huge moves are about to start unfolding not only in currencies, metals, or stocks but globally and some of these\u00a0supercycles\u00a0are going to last years. A gentleman by the name of Brad Matheny goes into\u00a0great detail\u00a0with his simple to understand charts and guide about this. His financial market research is one of a kind and a real eye-opener.\u00a02020 Cycles \u2013 The Greatest Opportunity Of Your Lifetime<\/strong><\/a><\/p>\n

As a technical analysis and trader since 1997, I have been through a few bull\/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive\/life-changing if handled properly.<\/p>\n

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Chris Vermeulen \u2013 TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By TheTechnicalTraders.com I have been going over the past data to attempt to identify future price targets and to help traders understand the true potential for the current precious metals price rally.\u00a0 We\u2019ve been sharing our data and research with you for many months are pleased to continue to share our predictive modeling system\u2019s outputs […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-151920","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/151920","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=151920"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/151920\/revisions"}],"predecessor-version":[{"id":151921,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/151920\/revisions\/151921"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=151920"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=151920"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=151920"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}