Public Post – A Trading Paradise In Metals And Miners

Are you basking in the Traders paradise?  At Chartfreak, trading has been good in Precious metals and Commodities.  Lets take a look at a few of our expectations going forward and review some trade set ups that are still working out favorably.

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SPX WKLY –  After warning that there were signs of another  sell off coming in November,I have recently been expecting a rally to draw the bulls back in.  I expect that we could see a repeat of the run up last September, as highlighted.

OIL REVIEW

Back on November 13 , I had a $26.09 Target for Oil on a weekly chart.  I also pointed out a $24 target later , if the selling reached extremes.

Last week the XLE didn’t make new lows, but Oil did, dropping to $26.05.   That along with cycle timing caused me to look for Oil to possibly see a temporary bottom here.

I used these charts in my February reports.

Oil  gapped up recently , so I drew my expectation of a gap fill and a tag of trend line. Then the move higher.

We got a perfect tag of the trend line.   I still believe that Oil may be finding a bottom unless this trend line breaks?

Notice that Some Oil Stocks bottomed last summer, well before Oil.

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GOLD SILVER & MINERS

GOLD– We caught the strong run up in Gold and Miners right from the shake out lows in GDX.  On Feb 17 I thought that a FLAG could form to consolidate recent gains, while individual Miners may still rally or play catch up, so I presented this idea and a few alternative ideas as well.

You can see that the Bull flag is almost complete.

SILVER –  Silver never broke out, so it may do that this week or it may just continue to consolidate.

I definitely believe that we may be seeing the next phase of the Bull Market in Precious metals starting, as we surge out of the lows. Nothing goes straight up though, so lets also discuss what an eventual pull back could look like, as it may present another buying opportunity.

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This is one that would shake many people up. I don’t think that it is the most likely path, but it needs to be viewed to prepare us for any possibility.

These 2 charts were in my last public report. I favor these views.

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What about this Traders Paradise?  Past public reports have pointed out some of our trades in Miners  and  commodities.  Lets review a couple more here.

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SWC – This stock was pushing on the 50sma and was a good set up last week.

SWC –  SWN has broken out after reporting earnings. I expect higher prices.

MUX –  We recommended a 2nd buy on Jan 26 at $1.17

MUX  – today it is at $1.75.  If Miners pull back in a significant way, I can see a test of the 50sma as possible.

ABX – $ 7.65  inverse H&S with good volume pops.

ABX currently at $13.42.  This may just form a handle, before another strong mive higher.

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Here is some good news too.  Some of the commodity stocks presented  in past reports as ‘trade set ups’ now appear to be breaking from their bases and could have great upside potential  for the long term. 

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CENX – Feb 3, nice long base with a shake out, ran and pulled back to $4 at the 8 ema.

CENX   Has moved from $2.63 to above $7.   A pullback may be another buying opportunity. Look back at how ABX and NEM ran from their long bases.

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FCX was mentioned as bottoming near $4, and then a  2nd buy was at $6 as it broke above the 50sma.  FCX is near $8 today. This also may be bought on the dips if it remains healthy.

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Feb 3 – VALE at $2.32 , this was a low risk entry, since your stop would be placed below the lows.  Price  is now trading above  that blue triangle.

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X Daily–   Notice that US STEEL is  forming a multi month base with divergence.  This has a lot of upside  potential if it recovers from here.

Recent reports  featured AA, AKS, STLD, TCK, VALE, FCX , etc., and most of them now look like bases that may become longer term bottoms.

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I’ve been discussing the possibility of the Equity Markets topping and the Bull returning in Precious Metals and Commodities for a while now.   Many public reports have been posted at Chartfreak.com to highlight these events.  I liken it to a large freighter ship turning around in the ocean.  They can’t turn on a dime, but gradually they will reverse course and head in the other direction.   Is that what we are seeing here in the markets today?   Many Miners and commodity stocks look to have built their bases, and they could even become buy & hold investments longer term if conditions remain this way.  Why not join us as we continue to monitor the situation? Chartfreak.com

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~ALEX