METALS NEARING CRITICAL MOMENTUM FOR NEW PARABOLIC RALLY
METALS NEARING CRITICAL MOMENTUM FOR NEW PARABOLIC RALLY by Chris Vermeulen for The Technical Traders
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.