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2019 is coming a close, and now as we turn towards next year, I present to you a list of 10 stock market predictions for 2020. You can review my list of top 10 predictions for previous years 2016, 2017, 2018, and 2019 to see how I did.
As I did last year, I will start with number 10 and work our way up to number 1 over the final month of 2019. Enjoy!
Prediction 5: Oil, Copper, and Gold Will Soar in 2020
With global growth returning, the U.S. economy surging to a 3% growth rate, U.S. rates on the rise, the U.S. dollar sinking, and the return of inflation, commodities and materials will soar.
There is no doubting that a weak dollar and global growth can help to push commodities higher. Three commodities that may benefit are Oil, Copper, and Gold.
Oil
The chart below shows the relationship between the trade-weighted US dollar index and the price of WTI Crude oil. During the periods of dollar strength, oil prices were depressed, while during periods of weakness, oil prices soared.
The technical chart shows that the price of oil is very close to breaking out should it rise above resistance at $61.70. It could lead to the price increasing to around $67. That is where oil will meet a long-term downtrend that started in 2014. That will be the moment of truth, break above that downtrend, and oil has much further to rise, perhaps back to price not seen since 2014. If not, then oil will continue its secular decline.
Copper
Copper prices are also very close to breaking out and should the price rise above $2.81; it could move higher towards $3.00
Gold
Meanwhile, gold prices are breaking out of a pennant pattern, and it suggests that the metal takes on a resistance level at $1,556. However, it could be a more significant year for gold than that. Should gold rise above resistance, it could go on to soar to $1,700.
It make rising commodities prices prediction 5.
-Mike
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This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.
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