Technical Analysis Confirms Support Level on the SPX

This week presented some interesting price rotation after an early upside breakout Sunday night. The Asian markets opened up Sunday night with the ES, NQ and YM nearly 1% higher this week. This upside breakout resulted in a clear upside trend channel breakout that our researchers believe will continue to prompt higher price legs overall. Our researchers, at Technical Traders Ltd., have issued a number of research posts over the past few weeks showing our analysis and the upside potential in the markets that should take place over the next few weeks.

We expected a broad market rally this week, yet it has not materialized as we expected this week. We consider this a stalled upside base for a new price leg higher. Take a look at this Daily SPY chart to illustrate what we believe the markets are likely to do over the next few weeks. There are two downside price channels that have recently been broken by price (RED & YELLOW lines). Additionally, there is clear price support just below $272.00 that was recently breached. These upside price channel breakouts present a very clear picture that price is attempting to push higher and breakout from these price channels.

Current price rotation has tested and retested the price support level near $272.00 and we believe this recent “stalled price base” will launch a new upside price rally driving price well above the $280.00 level.

With the holiday weekend setting up in the U.S. and the early Summer trading levels setting up, it is not uncommon for broader market moves to execute after basing/staging has executed. This current upside price action has clearly breached previous resistance channels, so we continue to believe our earlier research is correct and the US majors will mount a broad range price advance in the near future.

The VIX, on the other hand, appears poised to break lower – back to levels below $10 as the US major price advance executes. The VIX, as a measure of volatility that is quantified by historical price trend and volatility, should continue to fall if our price predictions are correct. If the US major markets continue to climb/rally, the VIX will likely fall to levels well below $10.00 and continue to establish a low volatility basing level – just as it did before the February 2018 price correction.

A holiday weekend, the start of lighter Summer trading and the recent upside breakout of these downward price channels leads us to believe the market will continue to push higher over time with the possibility of a massive upside “melt up” playing out over the next 2 - 6+ weeks. We believe this move will drive prices to new all time price highs for the US majors and will surprise many traders that believe the recent price rotation is a major market top formation.

Our exclusive Wealth Building Newsletter provides detailed market research, daily market video analysis, detailed trading signals and much more to assist you in developing better skills and greater success in your trading. One of our recent trade in natural gas using UGAZ, [check it out here] is already up over 26% and we believe it will run another 25-50% higher from here! We provide incredible opportunities for our member’s success. We urge you to visit The Technical Traders to learn how we can assist you in finding new success.

Our 53 years experience in researching and trading makes analyzing the complex and ever changing financial markets a natural process. We have a simple and highly effective way to provide our customers with the most convenient, accurate, and timely market forecasts available today. Our stock and ETF trading alerts are readily available through our exclusive membership service via email and SMS text. Our newsletter, Technical Trading Mastery book, and 3 Hour Trading Video Course are designed for both traders and investors. Also, some of our strategies have been fully automated for the ultimate trading experience.

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Natural Gas Flashes Buy Signals With Confirming Cycles - Here’s the Entry Levels and Patterns

Our research team has been following the energy sector quite intensely with Oil and Natural Gas making an impressive move. A little known seasonal pattern in Natural Gas has set up recently and we have alerted our members to this play which is already up over 16%. Our advanced price modeling systems and Adaptive Dynamic Learning Cycles have recently triggered another buy entry point which we share in this article but first look at the seasonal chart showing the month which Natural Gas is generally strong.

This seasonality table refers to particular time frames when commodities are subjected to and influenced by recurring tendencies that produce patterns each year.

It is our belief that Natural Gas will continue to climb higher moving well above the $3.00 level before the end of this month as well as potentially pushing well above the $3.20 level on continued price advances in energy.

Quite a bit of concern globally is driving energy supply fear that is pushing energy prices higher. This unique seasonal pattern indicates the potential for some strong upside price moves. We believe smart traders were already positioned for this move weeks ago, yet there is still quite a bit of opportunity from the recent entry point. See the left side of chart; below with oversold pullbacks.

A price move from current levels to above $3.00 would reflect an additional 4~6% price gain and a advance above $3.20 would reflect a 11% price advance. Again, our predictive price modeling systems and cycle modeling systems are showing us this has the potential for quite a bit more, but we can only estimate the $3.00 to $3.20 level is a sufficient upside target for this initial move.

If you would like help finding trade triggers like this and help knowing what to expect each day in the markets visit us at www.TheTechnicalTraders.com. We’ll help you to understand the market dynamics as the markets move, we’ll provide you with a comprehensive daily market video to show you what to expect and we’ll continue to provide you with this simple yet highly effective market research and analysis to help you stay ahead of the market moves. Our current trade in UGAZ is up 16% and likely going much higher. It just takes one or two of these types of trades to pay for your membership for years.

Our 53 years experience in researching and trading makes analyzing the complex and ever changing financial markets a natural process. We have a simple and highly effective way to provide our customers with the most convenient, accurate, and timely market forecasts available today.

Our stock and ETF trading alerts are readily available through our exclusive membership service via email and SMS text. Our newsletter, Technical Trading Mastery book, and 3 Hour Trading Video Course are designed for both traders and investors. Also, some of our strategies have been fully automated for the ultimate trading experience.

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How Congestion Basing Can Present Incredible Opportunities

Our research team here at the Technical Traders wanted to alert our followers to the incredible opportunities that continue to present themselves in the current market. While many people have been overly concerned about a market top and price rotation in the US majors, the Energy sector and many others have seen incredible price moves.

Take a look at this XLE chart as an example. Yes, we know that Oil has rallied from about $60 to closer to $70 recently, yet we want you to focus on the price pattern that setup this move in XLE. Specifically, we want you to focus on the Multi-Month Base pattern in price between early February and early April of 2018 as well as the upside breakout that followed.

In true technical analysis theory, price tells us everything and indicators assist us in relating current price movement/action to historical price movement/action. This simple chart illustrates how price setup a top/resistance zone near $78 in early January 2018, broke lower in early February, then setup a multi-month price support base for nearly 60+ days. This price support base because an extended bottom formation and a “price support zone” by testing and retesting the critical $65~66 price level while establishing a series downward sloping high price peaks. When it finally broke free of this support zone, near mid-April, price skyrocketed higher (+17% or more).

With the stock market showing all the signs that it is in the late stage of a bull market this is when traders need to start identifying the hot sectors or high probability continuation patterns. Why? because we have entered a stock pickers market. It’s simple really, it means all the stocks are not going to be rising together and if you put your money into the wrong sector you could lose money while the markets rise.

So where is the next hot sector? We believe a very similar pattern is setting up in the IYT (Transportation Index) just like we saw on the first chart of the XLE. We feel an upside breakout move is likely to happen within the next two weeks.

The setup of this price pattern is a bit broader and more volatile than the XLE Multi-Month Basing pattern – which means the IYT upside breakout could be more volatile and dramatic in form (possibly driving price +10% to 20% over an extended period).

Additionally, the high price peaks are setting up in a similar format with lower high price peaks over the span of the base. Support near $182.50 to $185 is critical and we believe the eventual upside breakout will be an incredible opportunity for traders.

This breakout will coincide with much of our other analysis of the US major markets which we have been sharing recently.

Our other recent trade alerts, that are up well over 10% each are UGAZ, FAS, and TECL. These have been rocketing higher – as we predicted. On Friday we closed our TECL position which hit our resistance level and we locked in the 18.3% gains with our members. The single point of success for all of us is to manage our assets well in an attempt to achieve greater long-term success.

If you have not seen or read much of our recent analysis, please visit The Technical Traders to learn more and review our work. Our exclusive members are already positioned for many moves like this in the markets and more continue to form each week.

We urge you to consider joining our Wealth Building Trading Newsletter as a member to receive our incredible insight, proprietary research, and trade alerts to assist your own trading success. We have delivered insights and research to our members that have clearly informed them of where we believe the markets are headed for many months in advance. Imagine how powerful that kind of research could be for you?

53 years experience in researching and trading makes analyzing the complex and ever-changing financial markets a natural process. We have a simple and highly effective way to provide our customers with the most convenient, accurate, and timely market forecasts available today. Our stock and ETF trading alerts are readily available through our exclusive membership service via email and SMS text. Our newsletter, Technical Trading Mastery book, and 3 Hour Trading Video Course are designed for both traders and investors. Also, some of our strategies have been fully automated for the ultimate trading experience.

Chris Vermeulen

This Precious Metals and Mining Stock Chart Paints a Clear Picture

In this article, we are going to explain and show you an interesting pattern that has been slowly forming over the past year in the precious metals sector. This pattern along with our analysis point to a significant rally to start in the next 4 months for gold, silver, platinum, palladium, and miners.

Before we get into the details, below, it is important for every trader to step back and look at the bigger picture. It’s way too easy to get sucked into the markets movements, become an emotional trader, start losing a few trades, and second guessing your open positions.

We receive hundreds of emails every week from followers, and to be honest, this is one of the most powerful indicators available for letting us know when the majority of people are frustrated and have become emotional traders. Based on recent emails, their tone of the message, and market outlooks we can tell everyone is emotional and not seeing the market from a normal unemotional perspective.

There is no doubt it is easy to get caught up in the market and become an emotional trader if you don’t have a proven trading strategy for each type of market condition, advanced trading analysis, or trading guidance from a proven trading newsletter.

These past 30 trading days have been really tough to trade because the market is chopping around with huge one day moves back to back. Sometimes, its best to sit, watch and wait for some dust to settle before getting overly involved with new trades which is what we have done. Recently we traded YANG for a quick 8% profit, then we closed out two trades in TNA to profit 10.1%, then another 17.7% this month. Other than that, that’s about it. Now, with that said, things are about to get really exciting for us traders and we are getting ready for some new trades, both short term and longer term, looking forward many weeks and where the market should be headed.

Enough about all that emotional stuff, let’s jump right into the charts so you can see what we are excited about in this post!

Weekly Custom Precious Metals Weekly Chart 

The chart below shows several interesting data points and it’s fairly easy to see and understand.

Starting at the bottom of the chart you will see the purple line which is the Relative Strength Index (RSI). If we look back 4 years you can see a similar pattern unfolding which leads to a massive rally for precious metals back in 2016.

Knowing human behavior patterns don’t change, but rather repeat, it is likely we see another upside breakout and rally later this year. That does not mean, the price will go straight up, it simply means on average over time we should expect higher prices.

Before any new rally can take place, the precious metals sector must breakout above the pink falling trend line, just as it did in 2016.

If you didn’t notice already, we have posted our weekly cycle analysis for the precious metals complex. Over the next 6 – 8 weeks the sector should start to rally and try to break out. Again, this does not mean everything in the precious metals sector will rise. In fact, there are a couple areas you will want to stay away from. We share the best trade setups and alerts with our subscribers as they occur.

Weekly U.S. Dollar and Precious Metals Comparison Chart 

Here we show you on the chart the basic concept of how a falling dollar will push the price of gold higher, and how a rising dollar pulls metals lower on average. But this is not always the case. In fact, recent price action shows the dollar moving sharply higher while the precious metals sector moved sideways and higher. This looks like bullish divergence from their normal correlation and is likely caused by different global market dynamics injecting some new level of a fear that is funneling money into gold as a global safe haven.

Concluding Thoughts 

In short, we at The Technical Traders have been talking about the new bull market slowly setting up for precious metals since late 2017. As an investor and trader its always nice to be able to look forward knowing with a high probability what asset classes should be moving in and out of favor so we can position our capital accordingly.

If our analysis is correct once again, then over the next couple months this sector should be testing critical resistance to breakout and rally above the pink trend line. If you want to stay ahead of the markets and profit from our technical analysis then join the Wealth Building Newsletter now and get ready for this week!

53 years experience in researching and trading makes analyzing the complex and ever changing financial markets a natural process. We have a simple and highly effective way to provide our customers with the most convenient, accurate, and timely market forecasts available today. Our stock and ETF trading alerts are readily available through our exclusive membership service via email and SMS text. Our newsletter [sign up here], Technical Trading Mastery book, and 3 Hour Trading Video Course are designed for both traders and investors. Also, some of our strategies have been fully automated for the ultimate trading experience.

Chris Vermeulen