Today we will go through a detailed technical analysis of yellow metal, as we already know that silver is a proxy for gold so we don't need to evaluate it too much but we will try to cover it as well-we want you to to read and understand this analysis because it can add some immense profitable trades based on the mininimum risk and high reward-we will try to make this analysis as simple as possible so that even a novoice trader will be able to understand it-The yellow metal has topped out at around $2000 in 2011 and bottomed at $1050 in 2016,so we have witnessed around 50% correction in terms of prices, these are the things which every P.M investor knows but most often we tend to ignore what happens in between during this bear trend which is ongoing from more than 8 years-we will try to dig deep today-on july 2013 gold paused its decline at $1180 from the top of $2000-it took only 2 years for gold to make the 50% percent correction in term of prices, after this yellow metal has made correction and reached at $1440, that was the final correction we have seen in the strong bear trend where gold gained $250USD-
Today we are about to discuss the 10 cycles which occur in the gold market-
1-on Jun 2013 gold took a pause from falling further at $1180 and then made a steep incline to $1440.gold made a top at $2000 in 2011 and since then it begins to fall- the first correction usually happens to very significant that's why we have witnessed more than $250 move from $1180-$1440 after that gold prices began to plunge and on Dec 2013 reached again at around $1180 from $1440($260 move)- the first cycle ended in 6 months
2-on Dec 2013 gold was trading at $1180 after that Gold started to soar and reached at $1380 on March 2014 and made a $200 move after reaching to $1380 gold prices begins to correct and ended up at $1250 on Jun 2014 and made a $130 move-The second cycle ended in 8 months.
3-gold was trading at $1250 on Jun 2014 after that we witnessed the correction and gold reached at $1330 on Aug 2014 and made a $70 move after reaching to $1330 gold prices begins to plunge heavily and ended up at $1140 on Nov 2014 and made a $200 negative move-The third cycle ended in 5 months.
4-gold was trading at $1140 on Nov 2014 after that Gold started to soar and reached at $1300 on Jan 2015 and made a $160 positive move after reaching to $1300 gold prices begins to plunge very dramatically and ended up at $1060 on Dec 2015 and made a $240 negative move-The fouth cycle ended in 13 months.
5-gold was trading at $1060 on Dec 2015 after that Gold started to soar and reached at $1380 on July 2016 and made a $230 positive move after reaching to $1290 gold prices begins to plunge ended up at $1200 on Jun 2016 and made a $90 negative move-The fifth cycle ended in 7 months
6-gold was trading at $1200 on Jun 2016 after that Gold started to soar and reached at $1390 on March 2016 and made a $190 positive move after reaching to $1390 gold prices begin to plunge ended up at $1140 on Jan 2017 and made a $250 negative move-The sixth cycle ended in 8 months
7-gold was trading at $1140 on Jan 2017 after that Gold started to soar and reached at $1300 on March 2017 and made a $160 positive move after reaching to $1300 gold prices begins to plunge ended up at $1200 on Jul 2017 and made a $100 negative move-The seventh cycle ended in 6 months
8-gold was trading at $1200 on Jul 2017 after that Gold started to soar and reached at $1390 on Sep 2017 and made a $190 positive move after reaching to $1390 gold prices begin to plunge ended up at $1250 on Dec 2017 and made a $130 negative move-The sixth cycle ended in 8 months
9-The ninth cycle was interesting where we saw gold traded at $1250 and then made a final incline up to $1380 after that a heavy plunge started where we witnessed yellow metal to plunge from $1380-$1160
10-AT the moment we are witnessing the 10th cycle where gold has started to soar from $1160 and trading at around $1300-it already made a $140 move
The reason to write about these 10 cycles is to let you know that even gold has made a steep incline but the long-term picture for gold remains bearish until it will break above $1400 mark-major resistance sits at around $1380 level however it doesn't suggest that we can't open any buy trades for PM.s, if prices will break above our specific level then we might open some buy trades as well-for now we are still waiting for more confirmations
Today we are about to discuss the 10 cycles which occur in the gold market-
1-on Jun 2013 gold took a pause from falling further at $1180 and then made a steep incline to $1440.gold made a top at $2000 in 2011 and since then it begins to fall- the first correction usually happens to very significant that's why we have witnessed more than $250 move from $1180-$1440 after that gold prices began to plunge and on Dec 2013 reached again at around $1180 from $1440($260 move)- the first cycle ended in 6 months
2-on Dec 2013 gold was trading at $1180 after that Gold started to soar and reached at $1380 on March 2014 and made a $200 move after reaching to $1380 gold prices begins to correct and ended up at $1250 on Jun 2014 and made a $130 move-The second cycle ended in 8 months.
3-gold was trading at $1250 on Jun 2014 after that we witnessed the correction and gold reached at $1330 on Aug 2014 and made a $70 move after reaching to $1330 gold prices begins to plunge heavily and ended up at $1140 on Nov 2014 and made a $200 negative move-The third cycle ended in 5 months.
4-gold was trading at $1140 on Nov 2014 after that Gold started to soar and reached at $1300 on Jan 2015 and made a $160 positive move after reaching to $1300 gold prices begins to plunge very dramatically and ended up at $1060 on Dec 2015 and made a $240 negative move-The fouth cycle ended in 13 months.
5-gold was trading at $1060 on Dec 2015 after that Gold started to soar and reached at $1380 on July 2016 and made a $230 positive move after reaching to $1290 gold prices begins to plunge ended up at $1200 on Jun 2016 and made a $90 negative move-The fifth cycle ended in 7 months
6-gold was trading at $1200 on Jun 2016 after that Gold started to soar and reached at $1390 on March 2016 and made a $190 positive move after reaching to $1390 gold prices begin to plunge ended up at $1140 on Jan 2017 and made a $250 negative move-The sixth cycle ended in 8 months
7-gold was trading at $1140 on Jan 2017 after that Gold started to soar and reached at $1300 on March 2017 and made a $160 positive move after reaching to $1300 gold prices begins to plunge ended up at $1200 on Jul 2017 and made a $100 negative move-The seventh cycle ended in 6 months
8-gold was trading at $1200 on Jul 2017 after that Gold started to soar and reached at $1390 on Sep 2017 and made a $190 positive move after reaching to $1390 gold prices begin to plunge ended up at $1250 on Dec 2017 and made a $130 negative move-The sixth cycle ended in 8 months
9-The ninth cycle was interesting where we saw gold traded at $1250 and then made a final incline up to $1380 after that a heavy plunge started where we witnessed yellow metal to plunge from $1380-$1160
10-AT the moment we are witnessing the 10th cycle where gold has started to soar from $1160 and trading at around $1300-it already made a $140 move
The reason to write about these 10 cycles is to let you know that even gold has made a steep incline but the long-term picture for gold remains bearish until it will break above $1400 mark-major resistance sits at around $1380 level however it doesn't suggest that we can't open any buy trades for PM.s, if prices will break above our specific level then we might open some buy trades as well-for now we are still waiting for more confirmations