There are two primary reasons to consider a swing trade / investment (hedge) in AngloGold Ashanti (AU) (or similar companies).
This is Part Two of the Swing Trading AngloGold Ashanti Limited (AU) Report.
The first reason is that a global market time cycle is near or at peak and the other is in preparation for a coming scenario we see very possible – a revamp of our global economic structure.
Both reasons (market time cycles and a possible revamp in our global economic structure) will be topics I will cover in great detail in client reports in near future.
I won’t be explaining either of the two scenarios in this report, but I will for now point out the following;
- Portfolio Protection (Hedge). If I am correct about the near term time cycle completion in global markets, AngloGold is a decent portfolio protection trade should increased volatility come to the markets, and
- Economic Structure Revamp (Two Scenarios). If I am correct (further out in terms of years and not decades) that a significant global economic structural revamp is in fact in play, there is a high probability that corporations such as AngloGold will be fantastic trades / investments / portfolio hedging instruments of trade. I will be reporting on two scenarios for the economic structural revamp I see coming, one in which companies like AngloGold will do well and another scenario in which companies such as AngloGold will not do so well. It will be up to the trader / investor to watch as one of two scenarios play out – both I will present so we are prepared in advance.
In this report I present a weekly structural chart of AngloGold. It is a noisy chart but if you take the time to work with it you will find that the signals you most need to plan a successful swing trade and / or investment in AngloGold are very likely detailed on the charting below.
The AngloGold Ashanti (AU) chart below details the following scenarios / indicators for your swing trade and or investment (hedge) strategy (timing of entries etc);
- Bullish Scenarios – There are three white arrows that predict three possible uptrend scenarios, you can consider these possible price trajectories should AngloGold start to trend up. I won’t explain in detail how they are derived other than to say that symmetry plays a large part as does time cycle theory and Fibonacci levels. Simply put, if price starts to trend with one of the arrows, follow the trajectory for a trade and consider all other lines on the chart as possible support and retrace considerations for entries, exits, adding to or trimming your trade size.
- Gann Waves – The other scenario is not as bullish, but takes in to consideration an uptrend, slower and not as bullish in trajectory. The Gann Waves on the chart are the diagonal lines with multi-colors. Follow the wave in which price is trading and it is that simple. Long considerations at the bottom of each support area and trimming longs near the top of each.
- Fibonacci Levels – And the third indicator on the charting are the Fibonacci levels, the most important of which are marked with white arrows. You can ebb and flow a long trade taking in to consideration those support and resistance levels. The diagonal Fib trendlines are also included but are of less importance (grey dotted diagonal). And finally the horizontal Fibonacci lines are included. The Fibonacci lines are structurally motivated to the instrument and not conventional. In other words, the Fibonacci structure (overlay) on this chart is for mid to long term thinking / trade planning.
Other reasons for considering this trade;
- Price is above the 200 MA on the weekly. This is a significant signal for a long position.
- The MACD is crossed up on the daily time-frame. Another significant bullish indication.
- There are three distinct areas of symmetry on this chart, if correct, I see a fourth starting soon. This would be a return to the second time cycle within the symmetry of the life of this specific financial instrument. In other words, the most bullish area of the chart structure (on the weekly). This could very well repeat. This however relates back to the economic restructure that is coming and which of two scenarios I see possible playing out.
Below is the Chart for AngloGold Ashanti. The signals to plan your trading strategy are include on the chart.
The price targets and signals are much different than in Part One of this report, but that is intentional. Part one provides a simple trading strategy for hands off swing trading and / or investment and / or hedging. The trading plan included in this report is for more hands on trading and / or for more serious long term hedging or investing.
A Final Note:
This trade has to be considered one step at a time.
Specific to time cycles, there is no way to know what the markets will do at inflections in time cycles. In other words, we know that a large time cycle is coming due between the end of May 2019 and mid June 2019.
We also know it is large and will run for some time (see near future report for more detail). Within the time frame that the next time cycle(s) occur the markets will have waves of bullish and bearish trade trajectory.
We will be reporting in great detail about this specific time cycle, we see it lasting for up to six years (to peak) and we plan to day trade, swing trade, trend trade and invest / hedge with clear discipline through-out its peaks and valleys.
The other important final note is that we see two possible scenarios playing out in the large time cycle of the “next” (the commencement of the post carbon world economic restructure). In this, some companies (equities), some resources / commodities, currencies, sectors etc will do well and others will not do well. We see the separation (divergence) of bullish and bearish inflections to very likely be the largest in a generation, historical in fact. In one scenario companies such as AngloGold will do very well but in the other not so well.
The upcoming time cycle reporting and the upcoming reporting that will detail the “next” we see as being very plausible (an economic structural revamp) will be our focus reporting. The trade set-ups we will report on will be motivated around what we see as the next.
As I noted on my Twitter feed today, we see the next six years as a significant (historical) time in global financial markets.
Part One of the AngloGold trading strategy is available at link click here.
For More Study:
Visit our website blog link specific to swing trading and scroll down to posts that have been historically unlocked to the public. You will have to scroll down and scroll to historical pages.
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Article Topics; AngloGold Ashanti, AU, Swing Trade, Trading Strategy, Time Cycles, Price Targets, Hedge, Investment, Signals