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My first gold CRASH prediction for 2019

by , 18 November 2019
My first gold CRASH prediction for 2019
Normally, when I write about gold it's because I expect the price to rally to new highs. This is because gold has been on a continuous rally since October 2018.

And four out of five times, since September 2018, my Red Hot Storm Traders have closed four winners out of five gold related trades banking them gains of over 154% accumulated gains.

Today is different.

You see, for the first time in 2019, we are about to see a gold crash, and we have no time to wait…

Let me explain…
 
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This strategy can turn R100,000 into R925,388.90
in less than six years.
 
No matter your age, income or experience.
 
 
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Reason #1: When markets hit all-time high prices and good news floods the markets, sell gold
 
Last week, gold broke below a strong floor price level at $1,480 (Which I’ll show you in a bit).
 
This was ahead of President Trump's speech at the Economic Club of New York, as investors were expecting a positive outcome regarding the US-China trade wars.  
 
Basically, the US and China came to a partial decision to sign a deal to suspend $34 billion worth of tariffs on Chinese goods on the basis that China agrees to buy more American farm goods.
 
This news, resulted in the S&P 500 hitting record highs at 3,091 on 12 November 2019. And you know what drives up a market index right?
 
Investors buying stocks, pushing the prices higher than ever before…
 
And when we see stocks and indices rise, gold prices tend to fall…
 
Even Helen Lau, Argonaut Securities analyst said:
 
“Investors are expecting constructive news from Trump after he said trade talks with China were moving along very nicely and as the time for the speech is approaching closer it is impacting gold negatively,”
 
Reason #2: The BIG banks are unloading their gold bringing the price down
 
JP Morgan Securities are exiting their gold positions, as they believe that the US-China trade deal will push stocks higher.  
 
 
And Citigroup Inc. strategists, in an asset-allocation note, mentioned their plan to exit their long (buying) positions in gold.
 
In short: When big banks sell gold, as they believe the tensions between geo-politics are coming to an end, investors tend to follow which leads to rising stocks and falling precious safe-haven metals like gold.  
 
Reason #3: The unexpected positive results from a key economic indicator
 
Recently the ISM non-manufacturing index came in at 54.7 beating expectations of 53.5, boosting it 2.1 points higher than the previous reading.
 
This result eased uncertainty within the US economy as it was noted that 13 industries grew last month including agriculture, forestry, fishing and hunting, utilities, and the professional sector, among others.
 
This is another reason why investors will pile into stocks, and sell their gold investments.
 
And I’m just getting started, take a look at what the charts are showing…
 
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The chart confirms that a drop in gold price is on the cards
 
 
 
Looking at the daily chart of gold, you can see the price has formed what's known as a Descending Triangle.
 
A Descending Triangle is a negative (bearish) pattern which forms lower high prices while bouncing off the same low (floor level). (Shaded area)
 
In the past week, the price has broken below this floor level for the first time since August at $1,480.
 
This tells me the sellers are now infiltrating the market, which will cause a crash in the gold price.
 
If we take the difference between the high and the low of the Descending Triangle and subtract it from the low price, we'll get the first expected down target price for the shiny metal.  
 
In this case the target will be:
 
Price target = Low - (High - Low)
                    = $1,471 - ($1,552 - $1,471)
                    = $1,471 - $81
                    = $1,390
 
With the above fundamentals and now with the technical elements in place, we can expect the gold price to fall over $81 to $1,390…
 
With Red Hot Storm Trader, I’m going to take full advantage of this fall… 
 
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From best-selling author of “Crypto Revolution”
 
“Prepare for the great crypto resurrection”
 
The crypto bull market has begun again… and there’s a FORTUNE at stake
 
Anyone with a tiny stake to spare could potentially reap thousands of rands
 
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How to profit from the first gold drop in 2019
 
I have two gold stock trades that are lining up for a drop-in price which we can sell (short) and profit from. Don’t miss the NEXT SMS from me...
 
Trade well,
Timon Rossolimos,
Analyst, Red Hot Storm Trader
  
P.S: So far we are up over 89% with Red Hot Storm Trader for the final quarter in 2019. Let’s double that before year end. Click to join and profit from the fall in gold.


My first gold CRASH prediction for 2019
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