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March 30, 2016 | Believe It Or Not, It’s Happening To Gold

Chris Vermeulen

Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and author of the book: 7 Steps to Win With Logic

Tonight as I was going over my charts and running my end of analysis the charts jumped out at me with a trade setup and wanted to share my cycle chart for gold with you.

The price chart of gold below is exactly what my cycle analysis told us to look for last week WELL ahead of the today’s news and its things play out I as I feel they will then we stand to make some pretty good money as gold falls in value during the month of April.

If you have been following my work for any length of time then you know big price movements in the market like today (Tuesday, March 29th) based around the FED news ARE NOT and SHOULD NOT be of any surprise.

In fact, this charts told use about today’s pop 2 weeks ago and we have been waiting for it ever since. The news is simply the best way to get the masses on board with market moves and gets them on the wrong side of the market before it makes a big move in the other direction, most times… not always, though.

Take a look at this chart below. You’ll see two cycle indicators, one pink and one blue. The pink cycle line is a cluster of various cycles blended together which allows us to view the overall market trend of biased looking forward 5 – 30 days.

The blue cycle line is a cluster of much shorter time frame cycles in this tells us when we should expect strong moves in the same direction of the pink cycles or countertrend pullbacks within the trend.

One quick point to note with cycle trading is that the height and depth of the cycle does not mean the price will rise or fall to those levels, it simply tells us if the market has an upward or downward bias.

The current cycle analysis for gold along with the current price is telling us that today the short term cycle topped which is the blue line and our main trend cycle is already heading lower. The odds favor gold should roll over and make new multi-month Lows in August.

gold-collapse

 

Gold Trading Conclusion:

In short, we have been waiting for gold to have a technical breakdown and to retrace back up into a short-term overbought condition. Today Tuesday, March 29 it looks as though we finally have the setup.

Over the next 5 to 15 days I expect gold to drop along with silver and gold stocks. There are many ways to play this through inverse exchange traded funds or short selling gold, silver or gold stocks.

This year and 2017 I believe are going to be incredible years for both traders and investors. If treated correctly, it can be a life-changing experience financially for some individuals.

Join my pre-market video newsletter and start your day with a hot cup of coffee and my market forecast video: www.TheGoldAndOilGuy.com  

Chris Vermeulen

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March 30th, 2016

Posted In: Gold and Oil Guy

2 Comments

  • Avatar Fred Roberts says:

    Thanks Chris. Lots of commentators are pushing the idea that we should not expect a significant pullback and that if you don’t get on board now you will miss the train. But your own and Mr Cycles-Man Wood’s views give grounds to be more cautious.

    I’m thinking its worth using the next few months to build up funds to deploy in the second half of the year.

    PS The pink intermediate ‘trend and forecast’ is a little confusing – should not the blue (higher frequency) oscillations fit inside it ? Yet the pink line overshoots significantly between oct and nov. I guess you have your reasons for choosing whatever weightings you chose for it.

    PPS liked your video, congratulations on your hard work leading to success

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