Gold – Approaching breakout and targets

We have been waiting for gold to breakout above the 2008 high for almost 2 years. These charts show we are slowly working our way there.

At first we observe the Gold Continuous Contract Monthly Chart at the breakout in 2005 and apply there the GUNNER24 Up Setup.

We see that the price is above the important 1*1 Gann Angle = bullish. The price consolidates closely below the 2nd double arc which offers few resistance.

Once in march, 2008, it spiked off, formed there the starting point for the GUNNER24 Down Setup which then developed and tested back the 1st double arc. Further we see that the price closed once within the 2nd double arc. Certainly tight but corresponding to the rules, the 3rd double arc and with it the main target in trend direction are being reached. 

We can examine another variation. In the surroundings of the starting point of the breakout, we adjust the 8 Candle GUNNER24 Up Setup. That setup is most consistent, as well. The price lasts again above the 1*1 Gann. The price consolidates now below the 4th double arc which offers few resistance. Further we see that the price closed once within the 4th double arc. Corresponding to the rules, the 5th double arc in trend direction is being reached.

Up to now, both GUNNER24 Up Setups implicate indisputably rising prices for the future. For the sake of completeness and confirmation, now we apply the GUNNER24 Down Setup at the so far absolute high and try to find something to quibble about.

Considering the all time high and applying a GUNNER24 Down Setup we see that the price rebounded clearly and rapidly from the 2nd double arc. We keep at the back of our minds that the March to October 2008 swing was a matter of a minor correction during the upwards trend. Gold however has considerable difficulties to break the upper Gann Angle (1*2), and within the last months rebounded from it three times.

In all the horizontal GUNNER24 Square Lines and the Gann Angles, the rule of 3 and the rule of 4 generally have a great importance. Mostly after a break in the 3rd or 4th attempt some big moves follow.

We apply now the current valid GUNNER24 Trade Setup. The relatively long lasting duration of the initial impulse attracts attention. Considering the monthly chart, five candles give a sign of strong swings.

Besides, from candle 2 to 5 we observe higher highs always. Further, we discovered the actually valid Gann Angle and anchored it at an important square crossing point. All those circumstances hint a soon and strong continuation of the trend which should persist until the steeper Gann Angle breaks. In compliance with the lost motion we would accumulate our current long position on monthly basis after a break of the upper horizontal square line.

Now let's have a final look at the Gold Continuous Contract Weekly Chart: