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Gold, Silver, Natural
Gas & Oil Traders Update
by Chris Vermeulen
I hope everyone had a
great weekend and is now ready for another week of trading. I have put together
a few simple charts to show you what we could see with prices in the near term.
While I do not predict future price movements (because it is impossible to
always be correct), I do like to know what could happen and be ready to take
action when something significant occurs.
The five charts below
quickly summarize what I am seeing in the market currently.
Gold Stocks HUI Monthly
Gold stocks have been
performing very well this year. As you can see from the chart stocks are getting
squeezed into the apex, which generally creates explosive moves. We could be
months away according to this chart so dont get trigger happy just yet.
A breakout to the upside
will most likely trigger a very large rally. But if prices break down then I
expect to see gold stocks pull back to new yearly low.
GLD Gold ETF Gold
Bullion Prices Daily Chart
Gold has been trying to
move higher the past 4 weeks and is having a tough time. With any luck gold will
bounce higher Tuesday or Wednesday starting a new rally higher. If prices do not
hold, up I figure we will see a sharp price drop which could go all the way back
down to the $800 level within a couple months. I am currently long gold and will
continue to hold it until I see a technical breakdown on the chart.
SLV Silver ETF Silver
Bullion Prices Daily Chart
Silver is in the same
situation as gol. Its pointing to higher prices but a breakdown will most
likely trigger a sharp sell off. I currently own silver and will be looking to
exit below the $14.00 level.
UNG Natural Gas fund
Natural Gas Prices Daily Chart
Nat Gas looks to be
breaking down once again on rising volume. We could see another waterfall type
drop this week.
USO Crude Oil Fund Crude
Oil Prices Daily Chart
Crude oil had a big
pullback Friday which could make for a great short term intraday play on Monday.
Sharp price drops like this will generally have bargain hunters (buyers) step in
the following day to push the price higher. Also I pointed out that oil is
trading at 4 different support levels. This could give prices an intraday pop or
possibly start a new leg higher in the coming days.
I continue to wait for a
low risk setup in oil, which is possible that we get a setup this week. Only
time will tell but I will keep you posted.
Gold stocks, gold bullion
and silver are trading at support levels. The overall trend is up so there is
more of a chance that we will see a bounce from here. But the market always
throws in a curve ball so be prepared for locking in gains or cutting losses
quickly if we see prices slide lower.
Natural Gas continues to
have selling pressure and looks to be having a technical breakdown as of last
Friday. This could be a nice play for those aggressive traders who want to take
advantage of a 1-3 day breakdown in price.
Light Crude Oil is in a
similar situation as gold and silver. Currently trading at support and could go
either way, but the odds are in favor for a bounce.
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Vermeulen is Founder of the popular trading site
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Chris has been a leader in teaching others to skillfully trade in gold, oil, and
silver in both bull and bear markets. Subscribers to his service depend on
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This article is
intended solely for information purposes. The opinions are those of the author
only. Please conduct further research and consult your financial advisor before
making any investment/trading decision. No responsibility can be accepted for
losses that may result as a consequence of trading on the basis of this