Hello again!
This is the second article in our series, in which we introduce you to a different and exciting
way of approaching the markets. As always, let's start with an important disclaimer:
our analysis is provided for educational purposes only. It does not constitute financial or investment advice, nor should it be interpreted as a trading recommendation.
Our ultimate goal is to help you develop the skills to conduct your own analysis, identify your own risk and take-profit levels, and make informed decisions should you choose to trade the markets.
Let's take a look at the metals.
Let's start with gold.
Since reaching its high around the 5,600 area, gold has been undergoing a correction. Wouldn't it have been great to know in advance that prices were becoming overextended and that it was time to protect your profits? This is precisely the kind of insight you can learn to develop through our approach.
So, let's take a look at the current pattern.
Gold currently has two possible long term patterns unfolding: one bullish and the other bearish. However, in the short term, both scenarios point towards higher prices.
We are approaching what could be the final correction zone, located in the 3,900–3,800 area.
Metals have a tendency to extend their moves and produce sharp spikes during the final stages of their patterns. Therefore, we could see a sudden move lower followed by a strong reversal in this area.
The next upward structure will help us determine how far gold could rally and what kind of price movement we should expect.
If the next move turns out to be corrective, gold could potentially reach
the 5,000–5,600 area. We will be able to define this target more accurately once we have
more information from the next market move.
Remember:
metals can produce significant extensions!
Gold could still decline as far as the 3,600 area without invalidating the current
pattern.Manage your risk!
What about silver?
Silver currently has what we consider the most attractive pattern of all.
Buying silver below 50 could be one of those trades you remember for decades. Our
potential target zone is 95–120, with pattern invalidation around the 40 area. The potential
risk-to-reward ratio is particularly attractive.
Does this mean silver will move straight
towards that target? Of course not. There will be ups and downs along the way.
If you are interested, we will break down the pattern and define the potential path in greater detail as the market develops.
And there's more...
We are also tracking several other metals, as well as mining stocks,
where interesting opportunities could be developing.
We would love to hear your feedback and find out whether this approach resonates with you. Stay tuned, and let's see where the markets take us!