Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
Trading Crude Oil ETFs in Foreign Currencies: What to Focus On - 22nd Sep 21
URGENT - Crypto-trader event - 'Bitcoin... back to $65,000?' - 22nd Sep 21
Stock Market Time to Buy the Dip? - 22nd Sep 21
US Dollar Bears Are Fresh Out of Honey Pots - 22nd Sep 21
MetaTrader 5 Features Every Trader Should Know - 22nd Sep 21
Evergrande China's Lehman's Moment, Tip of the Ice Berg in Financial Crisis 2.0 - 21st Sep 21
The Fed Is Playing The Biggest Game Of Chicken In History - 21st Sep 21
Focus on Stock Market Short-term Cycle - 21st Sep 21
Lands End Cornwall In VR360 - UK Holidays, Staycations - 21st Sep 21
Stock Market FOMO Hits September CRASH Brick Wall - Dow Trend Forecast 2021 Review - 20th Sep 21
Two Huge, Overlooked Drains on Global Silver Supplies - 20th Sep 21
Gold gets hammered but Copper fails to seize the moment - 20th Sep 21
New arms race and nuclear risks could spell End to the Asian Century - 20th Sep 21
Stock Market FOMO Hits September Brick Wall - Dow Trend Forecast 2021 Review - 19th Sep 21
Dow Forecasting Neural Nets, Crossing the Rubicon With Three High Risk Chinese Tech Stocks - 18th Sep 21
If Post-1971 Monetary System Is Bad, Why Isn’t Gold Higher? - 18th Sep 21
Stock Market Shaking Off the Taper Blues - 18th Sep 21
So... This Happened! One Crypto Goes From "Little-Known" -to- "Top 10" in 6 Weeks - 18th Sep 21
Why a Financial Markets "Panic" May Be Just Around the Corner - 18th Sep 21
An Update on the End of College… and a New Way to Profit - 16th Sep 21
What Kind of Support and Services Can Your Accountant Provide? Your Main Questions Answered - 16th Sep 21
Consistent performance makes waste a good place to buy stocks - 16th Sep 21
Dow Stock Market Trend Forecasting Neural Nets Pattern Recognition - 15th Sep 21
Eurozone Impact on Gold: The ECB and the Phantom Taper - 15th Sep 21
Fed To Taper into Weakening Economy - 15th Sep 21
Gold Miners: Last of the Summer Wine - 15th Sep 21
How does product development affect a company’s market value? - 15th Sep 21
Types of Investment Property to Become Familiar with - 15th Sep 21
Is This the "Kiss of Death" for the Stocks Bull Market? - 14th Sep 21
Where Are the Stock Market Fireworks? - 14th Sep 21
Play-To-Earn Cryptocurrency Games Gain More and Is Set to Expand - 14th Sep 21
The CashFX TAP Platform - Catering to Bull Investors and Bear Investors Alike - 14th Sep 21
Why every serious investor should be focused on blockchain technology - 13th Sep 21
SPX Base Projection Reached – End of the Line? - 13th Sep 21
There are diverse ways to finance the purchase of a car - 13th Sep 21
6 Tips For Wise Investment - 13th Sep 21 - Mark_Adan

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold, Silver, and SPY Trend Forecasts

Commodities / Gold & Silver 2020 Dec 28, 2020 - 11:43 AM GMT

By: Chris_Vermeulen

Commodities

This second part of our special “What To Expect In 2021” article highlights our proprietary Adaptive Dynamic Learning (ADL) price modeling system and is specifically authored to help you understand where trends, price rotations, and risks may set up throughout 2021.  In the first part of this article, we covered the ES, NQ, and INDU symbols – highlighting how each one of these US major indexes showed a moderately deep price correction would setup in Q2 or Q3 of 2021. The INDU showed the deepest correction event with a specific “ADL Price Anomaly” setup. This second part of the series will cover Gold, Silver, and the SPY. 


GOLD ADL 2021 Price Predictions

We will start out focusing on the Gold Futures Weekly Chart.  Overall, the ADL Predictive Modeling system is suggesting a moderate melt-up in Gold prices – targeting the $2200 to $2400 level throughout the first 6+ months of the year.  We don’t see the ADL system making any bold predictions about Gold prices reaching levels above $2500 in 2021.  This is likely because we don’t see any real risk factors lasting longer than 3 to 4 months on the other ADL charts.

Yes, we do see some weakness in the ES, NQ, and INDU charts in Q2 and Q3, but we also see a recovery taking place near the end of 2021.  Therefore, Gold will likely continue to melt up at a rate of about 15% to 25%+ per year.  If Gold ends 2020 near $1900 and is predicted to reach levels near $2400 near the end of 2021, that would represent a 26% price increase in Gold for 2021.

SILVER ADL 2021 Price Predictions

The ADL predictions for Silver show two unique setups/peaks that are likely to prompt a much stronger price rally in 2021 than we see in Gold.  While Gold continues to rally in a fairly consistent trend, Silver sees a rally phase in March through June 2021, then another rally phase in September through December 2021.  You can see these drawn on the Weekly chart below as to “humps” in the YELLOW areas.  Each of these peaks suggests that Silver will enter a phase where it will likely rally higher and faster than Gold.  First, targeting the $33 to $35 level in May or June 2021, then targeting the $39 to $40 level in November/December 2021.

Be sure to sign up for our free market trend analysis and signals now so you don’t miss our next special report!

What we find interesting about this rally move in metals in 2021 is that the US major indexes are also rallying.  This suggests that the fear and hedging that drives the rally in precious metals is not subsiding (very similar to the period from 2004 to 2008) when the US stock market appears to be trending moderately higher.  This unusual setup suggests that precious metals are trending in a manner that suggests a broad market contraction is expected in the future (much like what happened in 2008-09).

SPY ADL 2021 Price Predictions

The following SPY chart shows the ADL predictive modeling system’s very unusual call for a deep late Q2 or early Q3 price collapse in the SPY.  The deep target, near $230, suggests that a market event is likely going to unfold sometime between June through August 2021 which aligns with the INDU deep downside price point.

The other thing that we find very interesting is that the SPY shows very little upside price trending throughout most of 2021.  The ADL predictive modeling system suggests the SPY will stay mostly flat to sideways in 2021 (excluding that big pullback potential near the middle of the year).  The lack of trend being displayed by the ADL for the SPY suggests the current rally highs may be reaching a near-term peak – where sideways volatility becomes more of a normal type of price trend.

Overall, taking all of these individual price predictions into consideration and attempting to consolidate a general response for 2021, it appears that trends may be a bit more muted in 2021 for the US major indexes and that a late Q2 / early Q3 deep pullback may be the big trend for next year.  It is difficult to see anything other than some moderate concern after May or June 2021 when we take a look at that deep ADL price prediction on the SPY and INDU charts.

We’ve recently highlighted that the major cycle phases of the markets have started to transition from Appreciation to Depreciation and 2021 may become a year where that transition phase reaches the end of the “excess phase”.  When this happens, we see a sideways volatile range in the market set up before the Depreciation phase trending begins (similar to what happened in 2010 through 2012).  Trending normally begins again after the transition phase is complete.

It appears that 2021 will stay somewhat muted regarding the major index trends. That means that skilled traders need to find opportunities by looking for unique sector/symbol setups that buck these lack of trends in the bigger indexes. We will be using our Best Asset Now tools and strategy to uncover and trade those rising sectors in an overall sideways or downward trending market. You can learn more about our services by visiting www.TheTechnicalTraders.com. You won’t want to miss out on some of these big trends in 2021!!

I want to wish you all Happy Holidays – get some rest so you are ready for all the action coming our way in 2021!!

Chris Vermeulen
www.TheTechnicalTraders.com

Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and is the author of the book: 7 Steps to Win With Logic

Through years of research, trading and helping individual traders around the world. He learned that many traders have great trading ideas, but they lack one thing, they struggle to execute trades in a systematic way for consistent results. Chris helps educate traders with a three-hour video course that can change your trading results for the better.

His mission is to help his clients boost their trading performance while reducing market exposure and portfolio volatility.

He is a regular speaker on HoweStreet.com, and the FinancialSurvivorNetwork radio shows. Chris was also featured on the cover of AmalgaTrader Magazine, and contributes articles to several leading financial hubs like MarketOracle.co.uk

Disclaimer: Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned. Technical Traders Ltd., its owners and the author of this report are not registered broker-dealers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an investment based solely on what you read in an online or printed report, including this report, especially if the investment involves a small, thinly-traded company that isn’t well known. Technical Traders Ltd. and the author of this report has been paid by Cardiff Energy Corp. In addition, the author owns shares of Cardiff Energy Corp. and would also benefit from volume and price appreciation of its stock. The information provided here within should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. Technical Traders Ltd. and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. Lastly, the author does not guarantee that any of the companies mentioned in the reports will perform as expected, and any comparisons made to other companies may not be valid or come into effect.

Chris Vermeulen Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in