{"id":172491,"date":"2020-06-21T10:09:58","date_gmt":"2020-06-21T14:09:58","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=172491"},"modified":"2020-06-20T15:15:58","modified_gmt":"2020-06-20T19:15:58","slug":"all-that-glitters-when-the-world-jitters-is-probably-gold","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/06\/all-that-glitters-when-the-world-jitters-is-probably-gold\/","title":{"rendered":"All That Glitters When the World Jitters is Probably Gold"},"content":{"rendered":"
June 21, 2020<\/div>
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By TheTechnicalTraders<\/u><\/a>\u00a0<\/strong><\/p>\n

– The economic pressures and concerns within the global markets have not abated just because the US Fed has ramped up the printing presses. Inversely, the stock market price levels may be elevated based on a false expectation of a quick recovery and of future expectations that may be very unrealistic.<\/p>\n

In terms of technical analysis, Gold has set up a very interesting sideways basing pattern after recently breaking above a major resistance channel near $1720.\u00a0 Our research team believes the recent base in Gold, near $1720 to $1740 is setting up just like the 2005 to 2007 peak in the US stock markets \u2013 just before the Credit Crisis hit in 2008.\u00a0 We believe the similarities of the current and past events, in price and in technical\/fundamental data, are strangely similar.<\/p>\n

An underlying asset\/economic class had recently experienced a stupendous bullish rally.\u00a0 This euphoric rally phase was brought on because the US Fed and global markets were running high on cash and credit \u2013 heck, everyone was.\u00a0 The \u201cno fear\u201d mentality was running wild, and so was the market.\u00a0 Suddenly, it appeared that the credit markets were seizing up and that interest rates had nearly doubled or tripled overnight as banks and lending institutions reacted to the US Fed raising rates.\u00a0 At that point, the catalyst for the Credit Crisis had already been set up \u2013 much like what is happening today.<\/p>\n

SPY \u2013 SPDR S&P500 ETF Trust Weekly Chart<\/strong><\/h3>\n

This SPY chart highlights the similarities between 2006-08 and now.\u00a0 It may be difficult for you to see on this compressed chart, but the price pattern we\u2019ve experienced over the past 2+ years is very similar to the price pattern that set up the peak in the markets near October 2007.\u00a0 This time, volatility appears to be 3x or 4x the levels from 2006\/07 \u2013 yikes.<\/p>\n

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Gold to Silver Price Ratio Weekly Chart<\/strong><\/h3>\n

The current level relating the price of Gold to the price of Silver is 98.2 \u2013 an extremely high historical level.\u00a0 There has never been a time like this in history where Gold has achieved this high of a price ratio compared to Silver.\u00a0 It is very likely that Gold has rallied to these current levels as a \u201cglobal hedge against risk\u201d and that Silver has simply been overlooked as a secondary asset.\u00a0 Even though supply for Gold and Silver has been decreased over the past 6+ months because of demand and the COVID-19 virus, we believe the current pricing relationships present a very clear opportunity for skilled technical traders.<\/p>

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Traditionally, the Gold to Silver ratio will likely fall to levels below 65 to normalize the price disparity.\u00a0 This suggests that Silver may see a 2x or 3x rally over the next 12+ months and Gold would likely see a 60% to 150% rally from current levels.<\/p>\n

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Gold Futures Weekly Chart<\/strong><\/h3>\n

This Gold Futures Weekly Chart highlights Fibonacci Expansion ratios from similar pre-expansion price ranges.\u00a0 The first measures the advance of Gold from 2001 to 2008 \u2013 the peak of the 2008 markets.\u00a0 The second measures the advance of Gold from 2015 to the recent peak (2020) \u2013 the presumed peak in the US stock markets<\/p>\n

The overlapping Fibonacci expansion levels on this chart paints a very clear picture that Gold may attempt to target certain levels should it begin a much broader upside price move\u2026<\/p>\n

_ $1950 \u2013 Key initial target level and could become minor resistance.<\/p>\n

_ $2250 \u2013 The next major target level representing a 2x expansion from the initial 2008 price rally.<\/p>\n

_ $2731 \u2013 This key level is like to become the bigger target for 2020.\u00a0 Our research team believes the alignment of this level with the current price expansion in Gold sits perfectly as the next upside price target.<\/p>\n

_ $3200 \u2013 This upper price target shows some importance \u2013 yet it is still quite far away from current price levels.\u00a0 Still, it is a valid upside price target.<\/p>\n

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We suggest taking a moment to review some of our earlier research posts related to Precious Metals and Gold\u2026<\/p>\n

June 3, 2020:<\/strong> Gold & Silver \u201cWashout\u201d \u2013 Get Ready For A Big Move Higher<\/p>\n

May 28, 2020:<\/strong> Shortage Of Physical Gold & Silver<\/p>\n

May 19, 2020:<\/strong> Gold. Silver, Miners Teeter On The Brink Of A Breakout<\/p>\n

GLTR Precious Metals ETF Daily Chart<\/strong><\/h3>\n

This Daily GLTR chart highlights the current FLAG formation that has setup in price and is about to breakout\/breakdown.\u00a0 Our researchers believe the obvious breakout move to the upside is going to happen given the current global economic environment and the fact that we are looking at Q2 data within 10+ days that will likely shock many investors.\u00a0 Notice that our Fibonacci price modeling system has drawn UPPER GREEN and LOWER RED triggers levels well above and below the current FLAG APEX level.\u00a0 This adaptive p[rice modeling system attempts to track price rotation and ranges while adapting internal factoring levels to identify proper Trigger and Target levels.\u00a0 At this point, GLTR must move above $85 to trigger a new BULLISH TREND or below $77.50 to trigger a new BEARISH TREND.<\/p>\n

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GLTR Precious Metals ETF Weekly Chart<\/strong><\/h3>\n

This Weekly GLTR chart highlights a 100% Fibonacci expansion range from the previous upside price rally levels.\u00a0 Should GLTR breakout to the upside and complete a 100% measured upside price move, the next target level for GLTR would be $94.70 \u2013 nearly 15.5% higher.<\/p>\n

This is an incredible opportunity for skilled technical traders if they understand how the precious metals and miners sectors are aligning for a bigger move higher.\u00a0 There has rarely been a time in history where Gold and Silver have been this depressed in terms of pricing when the global economy and stock markets have been this inflated\/elevated. It really may be the \u201copportunity of a lifetime\u201d.<\/p>\n

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We believe the next 15 to 30+ days will prompt a \u201cmelt-up\u201d in Gold to levels near $2000 to $2100. Silver will likely rally to levels above $25 to $26 over that same span of time.\u00a0 Once the bigger price breakout begins in Silver, attempting to normalize to the advanced price levels in Gold, Silver will begin to rally much quicker than Gold prices.\u00a0 We believe that will happen as Gold nears and breaches the $2000 price level.<\/p>\n

For skilled technical traders, this extended price move in Precious Metals, Miners, and a host of other sectors presents a very clear opportunity to time and execute some very exciting trades.\u00a0 We had been warning our friends and followers for over 18+ months now that the end of 2019 and all of 2020 was going to be incredible years for skilled traders.\u00a0 Don\u2019t miss the bigger moves \u2013 they are about to unfold over the next 30 to 60+ days and continue well into 2022.<\/p>\n

In short, I hope you glean something useful from this article and that I don\u2019t come across as a doomsday kind of guy. If this is the start of a double-dip, it\u2019s going to be huge, if it\u2019s the start of a bear market, it\u2019s going to be life-changing. If you are new to trading, technical analysis or are long-term passive investor worried about what to do you can follow my lead and trades both as a swing trader and my long term investing signals using simple ETFs at TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

Chris Vermeulen
\nChief Market Strategist
\nFound of Technical Traders Ltd.<\/p>\n

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

By TheTechnicalTraders\u00a0 – The economic pressures and concerns within the global markets have not abated just because the US Fed has ramped up the printing presses. Inversely, the stock market price levels may be elevated based on a false expectation of a quick recovery and of future expectations that may be very unrealistic. In terms […]<\/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-172491","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/172491","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=172491"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/172491\/revisions"}],"predecessor-version":[{"id":172497,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/172491\/revisions\/172497"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=172491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=172491"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=172491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}