GOLD IS SET TO MOVE LOWERHello traders & investors!
We have nice setup for Gold. On daily it was rejected at important daily supply zone. Now we are stuck in little range and we can expect some sideways action.
Once we start breaking lower, it should be a vicious move.
My targets are $1676.91 & $1611.34 . Personally I am not trading it, will look for good places to add bullion at blueish ractangle.
That's it, very simple concept :)
This is not a financial advice. Until the next one!
Inflationhedge
Gold fails to build upward momentum - key areas to watchGold fell on Friday to record a 2 week low and Monday it has failed to sustain any significant upward momentum. The dip has come after Gold recently hit a 9 month high. The precious metal continues to trade at levels at around PRICE
Resistance remains strong at $1848. After that bulls will target the multi-month high at $1877. This was last touched on Tuesday. Meanwhile, $1834 has been a strong support and it remains to be seen if gold will be able to hold this level. A collapse could see price head down to levels near $1810 and then bears will be targeting a fall to the psychologically significant $1800 figure.
The term ‘inflation hedge’ has gained further relevance recently with the US printing a 3 decade high inflation figure. Gold has lagged behind equities this year, but analysts will be looking at whether it could be set for a run up with a risk-off sentiment. Austria has entered a full lockdown and many countries in Europe are battling rising Covid-19 cases. Further lockdowns could increase the inflation hedge case for gold.
Meanwhile, the dollar has shown strength which has helped to cap any gold gains. Hawkish noises from the Fed along with rising yield bonds have given it a boost in recent days.
Wednesday will be key for short-term Gold price. We will receive FOMC minutes and other data releases from the US that will influence both the dollar and gold. Will the Fed take action earlier than expected to curb inflation? So far, it seems that the market is pricing in a rate hike.
CHCI Easy 20% Gain and Hedge Against InflationCompany Profile
Sector: Real Estate
Industry: Real Estate Management & Development
Company Location: Reston, VA
Comstock Holding Companies, Inc. develops, operates, and manages properties in the greater Washington, D.C. metropolitan area. The company operates through two segments, Asset Management and Real Estate Services. The Asset Management segment provides management services to a range of real estate owners and businesses that include various commercial real estate uses, including apartments, hotels, office buildings, commercial garages, leased lands, retail stores, mixed-use developments, and urban transit-oriented developments. The Real Estate Services segment provides a range of real estate services in the areas of strategic corporate planning, capital markets, brokerage services, and environmental and design-based services in the Mid-Atlantic Region. Its environmental services group offers consulting and engineering services, environmental studies, remediation services and site-specific solutions for projects. The company was formerly known as Comstock Homebuilding Companies, Inc. and changed its name to Comstock Holding Companies, Inc. in June 2012. Comstock Holding Companies, Inc. was founded in 1985 and is headquartered in Reston, Virginia.
First Target: $5.42
Second Target: $5.67
Third Target: $6.03
Fourth Target: $6.48
Stop Loss: $5.13
Multi-year cup and handle on #gold $GLDI'm a fundamental analyst first and foremost so I've been struggling with why gold hasn't been working as inflation accelerates to mid singles y/y percent growth and only looks to be going higher due to labor constraints. I thought $BTC and #crypto took share from gold but I now think most HF investors that were in BTC are out so not sure that is the case anymore. And, crypto is now in down cycle so gold should be able to regain some share. From a technical perspective looks set to break out of this multi-year cup and handle formation, which would be a huge move.
Physical Gold Ready to Break Out! With inflation no longer appearing to be "transitory" as the FED would like everyone to believe, now is a good time to consider diversifying your portfolio with some physical gold. Yes, physical gold! You might ask, why invest in gold? It has hardly performed over the past 10 years. Well that time is now as we are right on the precipice of the FEDs transitory narrative undoubtedly falling apart. Physical gold such as a gold eagle 1 oz coin acts as a physical store of wealth for your money and is considered legal tender in many states. It's a great diversifier like bitcoin and acts as a hedge against inflation. At the current moment, the charts look exceptionally bullish for the long term. We need to see sustained movement above $1,835 to confirm, which would give us the potential of the price of gold to easily break above the most recent high of around $2,000 and end 10 years of sideways performance. At this point we would be in a price exploration phase and the heights at which the price could reach is unlimited unless proven otherwise by a confirmed change in trend.
Gold cannot simply be created digitally or out of thin air and must be extracted from the earth which requires immense amounts of energy, expertise, heavy equipment, cash and most importantly, time, to extract physical ore from the ground to be refined. There is also a limited supply of gold within the earth that can be mined economically/possibly. This is why gold has been the best performing asset in the past 5,000 years as it is the basis of the supply and demand model and has outlived many of the failed currencies of past civilizations. Once demand peaks during inflationary times when people are looking for the exit into safety, price is sure to explode with growth.
When it comes to investing in gold, it is recommended by many wealth advisors to have at a minimum of 5% of your total wealth in physical gold with a max allocation of 20%. While one of the downsides of physical gold is storing the gold there are solutions to safely house your gold, which can be kept at home in a safe or within a vault at a bank. Another play would be to purchase gold miner stocks like Barrick Gold Corporation. With the increased price of gold, these miners profits would explode, resulting in huge price increases for the extremely undervalued gold miner stocks. The added benefit of high dividends is also a huge plus when investing in miners as you can use this to generate an income while still playing the physical gold “play.”
In short, if you are looking for ways to diversify and already have an interest in assets such as bitcoin as a hedge against the impending inflation then definitely consider visiting a local jeweler and coin dealer and speaking with an expert that can guide you in your first gold purchase.
CF Industries Holds the Breakout High and tight: That’s the pattern in fertilizer stock CF Industries.
Notice the sharp rally from the 200-day simple moving average (SMA) since the middle of September. It planted CF above the $56 level where the stock previously peaked in October 2018 and May-June 2021.
Interestingly, CF tried to test back toward that level on Monday but immediately found buyers under $59. That resulted in a higher low than the initial pullback on October 6:
The stock has also remained above its 8-day exponential moving average (EMA).
This quick dash higher was supported by analysts who like the company’s pricing power. That kind of price action, encouraged by Wall Street, may reflect a new set of investors involved in the name. That would also be consistent with the current tight price action, with few looking to sell yet.
CF may need more time to consolidate. However pullbacks may be shallow, followed by potentially more upside into yearend.
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Maybe inflation is transitory?Money printing in real terms is admittedly at the top of the historical range of this data set but its not beyond what we have seen.
Maybe inflation is transitory? Maybe it's not. It is clear that a vast majority of the additional money printing causes asset inflation otherwise this chart would look a lot different. i.e. if gold didn't have a significant move up then this chart would have broken out to a new ATH a long time ago.
Yes these charts are Raoul Pal inspired so nothing original is going on here but I find the idea of making gold the denominator or unit of account, to be a fascinating lens to view things.
DBB - Inflation be thy nameLot of "China is falling apart news" sell your metals recently such as:
www.kitco.com
IMO that story isn't going to age well at least in the near term... market buying the bad news. Recent new high on DBB. Copper looking bullish again too. Turns out the world still needs a lot of metal.
Based upon that recent high and bull-flag - DBB hitting $22 = very likely.
Inflation looks like it is ready to ROAR! At least for a bit longer.
Not financial advice.
$USB: Monster setupAll timeframes are setting up for a big move in $USB here, daily is kicking off a fresh uptrend after the recent bottom, weekly and monthly are about to trigger a trend as well, and by EOY the yearly will flash a 10 year uptrend signal which aims for somewhere between $220 and over $1600 per share by the year 2030. I think overall, the return vs risk proposition here is tilted significantly in our favor to buy both speculative swing positions, as well as potential long term positions too.
Keep a close eye on this setup, might be extremely rewarding and it is extremely low risk considering the potential upside at hand...
Cheers,
Ivan Labrie.
URA to the Moon (Uranium)Uranium will be entering a breakout over the coming years.
Demand for energy will skyrocket as problems began to surface in current infrastructure.
The technology has advanced by leaps and bounds. Going Nuclear will continue to be the narrative driving Uranium demand and mining companies.
See you in the future of energy.
Expect the price of your cup of coffee to increase. We have both technical and fundamental justifications as to why coffee is the next inflationary trade to jump into.
With supply chain issues and the seasonal changes in Brazil affecting coffee production and shipping, we can expect the value of the black breakfast gold to rise. Latin American coffee farmers are also reported to have gone on strike in the last few months to demand better prices for their produce as they are barely turning a profit.
Technical wise, the symmetrical triangle break shows us the fundamentals are playing out on the charts.
How Gold Responded in HistoryHow Gold respond in past specially in 2008 crisis and we are again in speculative time where stock prices are matter but not real value.
Between stock and gold gape is going wider but there a place where these can work as magnet and come to close again.
If bad time come I'm sure peoples will only look stable defense wall
Future Gold analysis using market geometry & cyclesLooking out into the medium term future of gold we can find likely points of price weakness using cycle analysis and then pairing that with market geometry we could also spot potential price target zones.
My chart calls out December 2022 as a danger zone!
Obviously a lot can happen between now and then but if the price continues to trade in the same trading channel that it has been following and breaks through the current upper resistance of ~$1920 then we could be in for a decent move up in gold followed by a sell off going into December 2022. The diagonal channel lines of the pitchfork tool have been well respected so I would expect a pull back to land on, or close to one of these lines/levels, I guess it depends on what is the underlying driver of the fall as to how deep the sell off will be. But I do believe some form of sell off is likely, as when you look back at the past 4 bottoms of the time cycle bubbles on the chart they very much line up perfectly with sell offs.
Starting from left to right we can track:
- Cycle bottom 1 sell off in Oct 2008 which was ~34%
- Cycle bottom 2 sell off in May 2012 which broke the top of the 4yr bull run, here the market loss is ~21%
- Cycle bottom 3 sell off in Nov 2015, where the market went sideways for a year after the previous sell off and then eventually broke into a full bear market for a ~41% sell off
- Cycle bottom 4 sell off in May 2019, this was only a small sell off of ~7%. The bigger sell off was a few months before hand and this was likely a shake out before a parabolic move up.
Further to the cycle bottoms if you look at the midpoint of each cycle there are also sell offs very close to the peak as well.
To wrap up I think Gold is a great long trade to be in now as we are seeing inflation popping and equities getting toppy and I'd say we will see a big move up once the current resistance level is broken. But the historical evidence is to strong to ignore so I won't be caught holding any gold positions or stocks in the lead up to December 2022.
**This my personal opinion and I'm not a paid advisor so please DYOR research before investing your cash**
BULLISH on SilverHey Traders,
I want to share with you guys the multi month ascending triangle I've spotted on Silver. I'm very certain that at some point soon we will have a massive breakout as we've been accumulating for almost a year! Couple that with the coming inflation and cycle out of risk on assets and we have ourselves a winner. This trade will probably take some time to play out but it looks very promising! As always remember exercise good risk management and like and follow if you found this helpful!
Support/Resistance EBON & InflationIt's been said Bitcoin could be a hedge for inflation..... digital gold...Whatever the case, crypto stocks and miners could be something to keep in mind. EBON has gotten beaten up pretty good and is back at the historic support/resistance level. IF the inflation speculation is accurate, it'll be interesting to see if the stock can firmly break back above this level.
"Ebang is considered a relatively pure-play cryptocurrency stock as hot produces circuit chips and crypto mining machines in China. Both of these items are in high demand right now, coupled with a major shortage. Because of this, many investors are bullish on the future of the tech industry, and specifically with crypto mining companies like EBON stock. With this in mind, is EBON worth adding to your list of penny stocks to watch?"
Quote Source: Best Penny Stocks to Buy Ahead Of Inflation? 3 To Watch Right Now
RIG Channel trading right nowRIG still holding a relatively clear channel right now. I think with the discussion on inflation it could get (and seems to have gotten) folded into the "inflation strength" conversation.
"So, why exactly is Transocean a play for inflation? Well, as stated earlier, energy penny stocks have a great amount of demand to contend with. This demand increase could result in increased financials for the coming periods."
Quote Source: Best Penny Stocks to Buy Ahead Of Inflation? 3 To Watch Right Now
Go for Gold!Gold is looking really bullish now. Perhaps it should challenge its last year high again soon. Looking at the 10 year chart, we can clearly see a cup with handle formation that is just waiting for breakout at around $1916. Based on the depth of the cup, we could potentially see a price objective of $2700. This is definitely a good hedge for inflation. Go for gold!!
Dislaimer:
This is by no means a recommendation to buy/sell. The ideas shared here are mainly for educational purpose only. Please consult your financial advisor prior to any investment decision.
DBA riding the trend upThis ETF has been my favourite since 2020. With the scarcity in supply from agriculture segment and the incoming waves of inflation, this could be one good bet for agriculture sector. It's looking like a small cup and handle with the neckline at 19.19, it's looking pretty good if there's good volume to push for breakout. Let's see how the US Market goes for next week. DBA has been riding on a good uptrend since June last year and looks very likely to continue further.
XAUUSD dropped as Yields Adjusted to Inflation ExpectationsThe XAUUSD dropped markedly yesterday as yields adjusted on the initial jobless claims and ADP beats. This is an interesting and potentially telling reaction. The yield adjustment likely came as inflation expectations were altered by the market. We also refer to the USDOLLAR which appreciated as the US10Y adjusted. It is often said the XAUUSD is a hedge against inflation but yesterday’s move was contrary to this. Therefore, as and when nominal yields make further adjustments we consider it prudent to look at the XAUUSD response relative to the USDOLLAR reaction to help with the analysis of direction.
Bull Flag on HBANBullish flag formation on HBAN.
Different entry points annotated.
HBAN is trading at a 13.79x P/E ratio versus 22x @ SBNY, 19x @ SIVB, 29x @ FRC, or 15x @ RF & FITB.
The benefits from acquiring TCF bank will begin emerging over the course of the rest of this year and be in full effect in 2022.
GOLD (Inflation Hedge)As previously mentioned in my outlook of SPY , the best way to play this is ticker GOLD. Barrick recently breached the 200 day MA and is currently resting here. Today it traced back down to 200MA and went back up. There are buyers here waiting to see what happens. If you read my SPY idea, you can look back and see what happened around the end of 2018. Gold Futures went up alot but was also trading between 1200-1300 per ounce. Current Gold Futures is at 1890! I see a big huge upside for Barrick here. I hope you see it too.