Tag: Relative Strength Index (RSI)

Gold Struggles While Silver Doesn't

Posted on by Aibek Burabayev

In this post, I will take a deep dive into the chart structure of the precious metals as prices approach crucial triggers but on the opposite sides of each metal.

Let’s start with gold as it struggles to gain a foothold above $1200.

Chart 1. Gold Daily: Pullback

Gold Struggles
Chart courtesy of tradingview.com

The votes were split almost evenly in the poll in my earlier post about the gold’s outlook. Half of the readers chose the trigger of the upside resistance at the $1218 and the rest thought that the market would drop to retest the $1122. The metal price then was just a little bit lower than these days at the $1186.

Almost one month has passed since then, and to my surprise, none of the triggers were pulled although we were very close to the $1218 point, the market couldn’t push above the $1214 at the end of the August and then retreated below $1200. This month we could see the increasing activity as investors are back from their summer holidays. There was another attempt to clear the resistance last week, but it stalled at the $1213 and the significant level again remained untouched. Continue reading "Gold Struggles While Silver Doesn't" →

Gold & Silver: Hard Ground or Quicksand?

Posted on by Aibek Burabayev

I know that most of the readers don’t like when I post bearish outlooks for the top metals as even if there are dozens of downloads, still nobody pushes the “like” button. It could be a fascinating research subject for behavioral finance or at least an excellent contrarian indicator.

Frankly speaking, I keep an unbiased stance and share my view of the structures that develop in the market. I just read signals that the market sends us all the time. From the start of the year, there are totally bearish outlooks were posted as we had strong signs in the charts and we can see that they proved to be right and one could make good money.

In this post I would like to address the question that arises these days, is this recent bounce a reversal or just another correction?

Let’s start with gold.

Gold Weekly Chart: Market Eyes $1122 To Complete The Structure

Gold Weekly Chart
Chart courtesy of tradingview.com

Before we start I recommend that you check out this earlier gold chart to see the price and triggers’ position before the drop and signals, which I outlined in that post to refresh your memory as more than six months passed. Continue reading "Gold & Silver: Hard Ground or Quicksand?" →

S&P 500: Exhausted?

Posted on by Aibek Burabayev

Last month I shared with you my concern about the possible reversal of the index in spite of the solid gain booked earlier. The chart of the S&P 500 spoke for itself, showing a weakness in the structure of the move up. The angle of the uptrend was too gentle to sustain. And the finishing punch came from the RSI indicator, which had an invisible Bearish Divergence on its chart.

We never know what the future will bring us, although this time the geometry of the double resistance worked just perfect as I assumed another spike to that area of $2860 before a reversal in my earlier post. Bingo! The index peaked right in that area at the $2863 and then collapsed. This is further proof of the magic power of the trends.

Chart: S&P 500 Daily: Watch Support After The Failure At The Resistance

SP 500 Exhausted
Chart courtesy of tradingview.com

This is an updated chart above, which reflects the market changes and shows the outlook of the possible upcoming behavior of the S&P 500. Continue reading "S&P 500: Exhausted?" →

S&P 500: Not A Rocket!

Posted on by Aibek Burabayev

Back in May, I posted the alert about the upcoming rally of the index in case of the breakup of the triangular consolidation. Indeed, the S&P 500 already booked more than a 100 points gain from that day ($2679) but what I see in the chart now is not inspiring me these days.

Below is the new daily chart where I made the annotations to express my concerns.

S&P 500 Daily Chart: The Index Loses Steam Within A Possible Large Complex Correction

S&P 500 Daily Chart
Chart courtesy of tradingview.com

First of all, let me tell you why I gave the title “Not A Rocket” to this post. Usually, a good rally has a sharp angle of the trend, and anyone could easily identify it with the naked eye. This is what I was looking forward to giving the title for the earlier post using the proverbial phrase “Fasten Your Seatbelts.” Continue reading "S&P 500: Not A Rocket!" →

Does Oil Hold The Key To The Canadian Dollar

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals - Canadian Dollar


At the end of last month, I called for a substantial upcoming weakness in crude oil as the market could have finished the long-lasting consolidation after the earlier crash from 100+ levels. Indeed, oil lost almost $4 from that time and now is rebounding as markets naturally move in zigzags.

Oil-related currencies also suffer, and in this post, I would like to share with you an exciting chart setup with tremendous profit potential for one of such currency, the Canadian Dollar (CAD) also known as “Loonie” among traders.

Before that, I built a chart to demonstrate the correlation between WTI crude oil and the Canadian Dollar.

Chart 1. WTI futures Vs. Canadian dollar futures: Perfect Correlation

Canadian Dollar
Chart courtesy of tradingview.com

In the chart above the WTI futures graph is black on the right scale and the Canadian Dollar futures graph (in US$ per 1 CAD) is red on the left scale. I didn’t add any annotations on the chart as you can clearly see that the correlation is just perfect and the most important fact is that the crucial market phases like strong moves and consolidations coincide in time. The Canadian Dollar tends to overshoot WTI amid market strength, but it is quite moderate during market weakness. Continue reading "Does Oil Hold The Key To The Canadian Dollar" →