Silver is likely to rise by almost another 10%

On Friday the silver trend has given an unmistakable sign: “I wanna get higher, why should I care about resistances, wanna see the 39$!” The actual monthly GUNNER24 Target is exactly at 38.90.

As we worked out last week everything seems to point to a 34 day upwards swing in silver and gold. Friday was the 26^th day of the swing, so both metals should rise at least during 9 more trading days.

Let’s get in medias res, at first recalling the weekly silver targets we worked out in the GUNNER24 Forecasts of 02/20/2011: 34-35$. During the whole week the 35$ were the resistance silver was working on. Well, on Friday that one was broken impressively. An important signal presenting itself in the weekly 21 Candle GUNNER24 as follows:

In the GUNNER24 Forecasts of 02/20/2011 I presented this Setup last. You will realize that I made the chart a little smaller to give the setup some more room to move upwards meeting the potential upwards development. Please pay attention to the red circles at I, II and III – the “former Resistance Gann Angle”. That’s where silver used to rebound pretty impressively downwards, and so silver was kept back there at the 35$ (green IV) until Friday. After the publication of the unemployment numbers the resistance Gann Angle was broken upwards the fourth time round. According to Gann a significant break or breakthrough in the Gann Angles takes place mostly in the fourth attempt nearly always releasing new energies.

For silver, in the final effect it means that on Friday most likely a very good deal of upwards energy was released making us suppose that the important resistances which still exist above the price (horizontal resistance at 36.00 and the 4th double arc at 36.50-37.70) can be tackled “relatively easily” and relatively quickly” and be overcome at least for the moment.

Let’s have a look at the actual daily setup now to analyze the force and the power of the Friday candle and to work out the possible upwards targets.

The Friday candle broke the 2nd double arc impressively. After the Rally Gann Angle resisted on Thursday, plenty enough upwards energy was produced on Friday beginning with the opening at 34.20, exactly at a price and time magnet (intersection point the lower line of the 2nd double arc and Rally Gann Angle) to push through the 35$ resistance and then the upper line of the 2nd double arc. Target now are the 38.20, the 3rd double arc which should be reached within the next 9 trading days. It’s absolutely possible if silver goes on following the clearly visible Gann Angle Corridor upwards.

The next recognizable resistance is the horizontal resistance at 36.50 that arises from the middle of the just passed square. It’s a relatively important resistance because it is recognizable in the weekly setup as well. There the lower line of the 4th double arc is going. The 36.50 should be reached until Tuesday at the latest. I’m hoping for a rebound there maybe even back to the 35.10 (test of the upper line of the 2nd double arc). It’s got to be used for the further building-up of some long positions.

It’s hard to assess whether the rebound will go that profound and whether there’ll be a rebound at all because this upwards trend is that crazily strong so we also have to reckon with the pulverization of the 36.50 in the first go.

But since the 38.20 are the target and since we have only 9 days left to reach the 38.20 those 36.50 shouldn’t be such a big obstacle. To take along the further ascent in any case you may place buy stops in regular intervals above the 36.50 to accumulate the long positions.

And here’s our special trick to make sure why the 38.20 shall come. For that I’m using a technique that I’ve never shown before in the GUNNER24 Forecasts, I think.

At the low of the 20^th day of the upswing we apply another GUNNER24 Up Setup comprising 5 candles now. Within the whole up-swing we make out a pretty unambiguous five day swing, you see. We trace the blue arc from the low of the 20^th day up to the high of the 24^th day, and we can see the following:

Confusing? Well, maybe, but it’s very meaningful. For dominating the markets it’s really not enough to work with indicators and oscillators because those don’t put out any target. GUNNER24 demonstrates us the limits and the targets of the markets, and being traders we need as much information as possible to understand and dominate the markets. We’ll have to work on ourselves and learn and understand, otherwise the markets will roll over us.

That’s enough of philosophy. All the comments on the 5 candle setup overlapping the 8 candle setup are compiled in brown/light blue. Considering now the first double arc of the setup of five we can see that this one is proceeding at 36.50 as well. That is to say the 36.50 are triple-protected, as it were. You simply have to go long at week opening, unseen, because it’s a trade of very few risk.

If the 36.50 are broken upwards the 2nd double arc of the setup of five will show us again an intersection at about 38.20. Because that’s where the 3rd double arc of the 8 candle setup is proceeding, too. That’s to say we’ll have another target-accordance. Thus we’ll be hedged twice.

If silver really accelerates now all those daily and weekly resistances above the price will possibly be just rubbish:

On the one hand the monthly GUNNER24 Setup puts out the 38.50 at the resistance Gann Angle. The lower line of the 4th double arc is lying at 38.90. As matters stand today those seem to become the magic price marks of this move. About that please pay attention again to the weekly 21 Candle GUNNER24 Up. There, exactly at 39.00 an important horizontal resistance is passing!

Since the daily setup is pointing to the 36.50 that clearly the horizontal resistance at 35.85 anchored in the monthly setup might possibly not be a strong resistance but rather serve as a support after reaching the 36.50.

To the gold: Two weeks ago we analyzed a new all-time high and as we all know…

„Mission fulfilled“. Even 1441 were reached. The 1474 continue being the target for this upswing:

Click the button below and order the GUNNER24 Gold Trader - $29.90 US a month. For 101 members and up - $39.90 US a month.

US stock market

„All quiet on the Western Front” is how I’d like to describe the situation in the S&P 500. Well, in the last issue I went into its situation more in detail, that’s why here’s but a little up-date.