FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
40,651,388Confirmed
1,122,997Deaths
30,356,688Recovered
Fetching Location Data…
Advertisement
Advertisement
Chris Vermeulen
Gold

After nearly 3 weeks of sideways/downward price action in Gold and Silver, our researchers believe both metals have already setup another breakout/rally attempt after breaching downward resistance (shown as the downward sloping CYAN line). For precious metals bugs, this could be another huge opportunity as the next move higher should prompt a rally above recent highs. That means a target price level in Gold above $2100 and a target price level in Silver above $30.50.

ARE METALS POISED TO RALLY TO NEW HIGHS SOON?

The deep price retracements recently in both Gold and Silver have come from news events. First, the EU Banking Report that destroyed the market on September 21. Then, just recently, the news that President Trump contracted COVID-19. The resilience in both Gold and Silver near these recent lows suggests demand for metals is still skyrocketing – otherwise we believe much deeper price lows would have been reached.

If our previous research is correct, this current basing/bottoming pattern could be the beginning of an explosive upside “appreciation” phase in precious metals. Please take minute to read the following past research post from our team.

Sept 27, 2020: GOLD AND SILVER FOLLOW UP & FUTURE PREDICTIONS FOR 2020 & 2021 – PART I

Sept 28, 2020: GOLD AND SILVER FOLLOW UP & FUTURE PREDICTIONS FOR 2020 & 2021 – PART II

We expect Gold to rally to levels near 1995, then stall a bit before breaking clear of the $2085 level and pushing well above the $2150 as a new rally phase begins. At this point, we believe the upside move to break the CYAN resistance channel is key to starting this upside price recovery.

The setup in Silver is very similar and in many ways a bit clearer on the chart. The CYAN downward sloping price channel is very clear. Price is very close to breaking above this channel. We believe the next move in Silver is a rally to levels near $28, then stalling briefly before the next “appreciation” phase begins pushing Silver above $31.50.

Remember, what we are calling the “appreciation phase” is really a much longer term price appreciation cycle in metals that should begin within the next 6 months and may last 2+ years. When we are reviewing Daily charts, as we are in this article, we are talking about an appreciation phase that may last 7 to 15 days – not 2 years. Take a look at the research articles we’ve linked near top of this article to learn about the broader market phases that are setting up.

Still, the end result is that we believe Gold and Silver are ready to start moving much higher at this point – we just need to see those CYAN levels broken first.

Metals have been, and continue to be, incredible opportunities for skilled technical traders. Repeating cycles and patterns allows skilled traders to pick from multiple triggers. If you want to learn how to become a better metals trader, visit www.TheTechnicalTraders.com to learn how we can help you out.

NOTICE : Our free research does not constitute a trade recommendation, or solicitation for our readers to take any action regarding this research. It is provided for educational purposes only. Our research team produces these research articles to share information with our followers/readers in an effort to try to keep you well informed. Visit our web site (www.thetechnicaltraders.com) to learn how to take advantage of our members-only research and trading signals.

For a look at all of today’s economic events, check out our economic calendar.

 

Advertisement
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US