Gold, Silver, Oil and SP500 Trading Charts

By: Chris Vermeulen | Thu, Apr 22, 2010
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It's been, an interesting week as stocks and commodities claw their way back up after the end of week sell off on Friday. Most of the chart technical are pointing to another wave lower for gold, silver, oil and the broad market.

This next wave of selling would form an ABC retrace pattern on the commodity charts and this pattern is bullish. Also commodity prices would drop to key support levels which would most likely provide a low risk entry point depending on the price and volume action at that time. So lower price is good for the big picture which is higher prices.

The charts below are a quick visual of what I am seeing and thinking...

GLD - Gold Exchange Traded Fund Trading Chart

The gold etf trading fund is getting closer to completing is 4 month correction and start another rally if all goes well in the coming week or two. What I am looking for is gold to hit resistance at $113 and then drop to the $110 level which is a key support level.

SPDR Gold Trust Shares Showing Reverse Head and Shoulders

SLV - Silver Exchange Traded Fund Trading Chart

SLV etf fund looks ready for a pullback also. Both gold and silver tend to move together and support would be tested here also.

iShares Silver Trust

USO - Oil Trading Fund Chart

USO shows that one more thrust down would bring prices to a key support level also.

USO United States Oil Fund

SPY - SP500 Exchange Traded Fund Trading Chart

Stocks have been on fire the past few months but this rally looks to be getting long in the teeth. After a rally this strong without any pullbacks one has to think that when a correction does start it will be a very sharp sell off. I will point out a few years ago we saw this exact type of price action for the broad market and it continued higher for several more months before actually putting in a large correction. If we don't see a large correction, then we would see similar price movement which we saw last November and December with the sideways choppy price action and slow rally higher.

S&P500 SPDRs

Mid-Week Market Update:

In short, I think the market is ready to finally take a breather. What I am looking for another sell off which will break the low for gold, silver, oil and SP500 last week. If this happens then panic would be triggered washing the market of all the traders who have been buying at these high levels (chasing prices).

Stocks have been very strong and new money continues to push prices higher so we could just see a relatively small pullback between 3-5% and then the rally could continue.... This would work very well with gold, silver and oil as they would be testing key support levels and should be ready for a another upward surge.

It doesn't really matter what the market does as there will always be great opportunities. Waiting for quality setups requires discipline and focus because it is not very active. I see traders making all kinds of silly trades which chip away at their profits because they cannot sit and watch when they should be.

During slow times I actually focus on learning more about the markets going through charts, inter-market analysis comparing things..... That kills a ton of time and helps make you a better trader in the long run. So if you don't see a good trade get out and do something fun or educational. Don't just start trading the 5 minute charts because you want to trade...

If you would like to receive my ETF Swing Trading Signals be sure to checkout my service: www.TheGoldAndOilGuy.com

 


 

Chris Vermeulen

Author: Chris Vermeulen

Chris Vermeulen
President of AlgoTrades Systems
www.TheGoldAndOilGuy.com

10126 Hwy 126 East, RR#2
Collingwood, ON, L9Y 3Z1

Chris Vermeulen

Chris Vermeulen, founder of AlgoTrades Systems., is an internationally recognized market technical analyst and trader. Involved in the markets since 1997.

Chris' mission is to help his clients boost their investment performance while reducing market exposure and portfolio volatility.

Chris is also the founder of TheGoldAndOilGuy.com, a financial education and investment newsletter service. Chris is responsible for market research and trade alerts for of its newsletter publication.

Through years of research, trading and helping thousands of individual investors around the world. He designed an automated algorithmic trading system for the S&P 500 index which solves his client's biggest problem related to investing in the stock market: the ability to profit in both a rising and falling market.

AlgoTrades' automated trading systems allows individuals to investing using either exchange traded funds or the ES mini futures contracts. It is supported by many leading brokerage firms including:

- Interactive Brokers
- Trade MONSTER
- MB Trading
- OEC OpenECry
- The Fox Group
- Dorman Trading
- Vision Financial

He is the author of the popular book "Technical Trading Mastery - 7 Steps To Win With Logic." He has also been featured on the cover of AmalgaTrader Magazine, Futures Magazine, Gold-Eagle, Safe Haven,The Street, Kitco, Financial Sense, Dick Davis Investment Digest and dozens of other financial websites. His list of personal and professional relationships approaches 25,000, people with whom he connects and shares is market insight with out of his passion for trading.

Chris is a graduate of Seneca College where he specialized in business operations management.

Chris enjoys boating, kiteboarding, mountain biking, fishing and has his ultralight pilots license. He resides in the Toronto area with his wife Kristen and two children.

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