Gold reaches a crossroads again

Sometimes, there are emails dropping in by traders who want to learn by means of which criteria I choose the markets to be presented in the respective free Sunday forecasts. Well, my catchy answer to that question is this one:

Because A) I assume that I found some profitable, longer-lasting moves for position trading. And B) I presume some short-term, hefty resp. quick swings and possibly due important turns at determined changing marks that I C) summarize literally “immured” in the free GUNNER24 Forecasts to get – as I hope – a detailed trading plan and a mnemonic for the coming days/weeks/months I can steadily draw on.

D) Per se, I don’t care at all about the market that copes with getting into the free forecasts. The main point is that its future moves promise to me and thereby to you as well, I hope some pretty safe and profitable trading chances.

So, let’s start with gold now that once again resp. yet again reaches an important crossroads at the beginning of the new month of February, because in a most tenacious way it succeeded in heading for its two chiefest and thus strongest resistances in the monthly but also yearly time frame.

Forecast: At the beginning of February, starting from this mightily strong combined GUNNER24 Resistance Magnet it should have to dive into its last deflationary downleg in the current bear market by the beginning of February. In order to work off then, in April 2016 resp. at the latest in May 2016 the important round 1000$ in succession.

The precondition for this bear market to have come to an end ultimately is attaining and working off the 1000$ mark. In any case, after the 1000$ having been worked off, in April 2016 resp. in May 2016 I expect a several month bull run with a duration of at least 5-8 months to start!!

Let’s continue with the charts now to verify/underpin this forecast. At first, so to speak in order to get attuned, a retrospect. In the forecasts of 12/20/2015 „Gold outlook for January 2016“, we realized that gold had to begin almost compellingly a rather stable uptrend in the daily time frame from a very late December 2016 low being able to reach the 1123 till the beginning of February 2016:

And that’s what occurred. Beginning from the small higher low of 12/31/2015, a daily uptrend started that attained the 1123 for the first time last Tuesday. Last Wednesday marked the ultimate January 2016 high at 1128. The two highest daily closings of the month of January 2016 are at 1120.20 (last Tuesday) and 1118.40 (last Friday). The 1118.40 thus mean January 2016 close.

Please check the chart above. The expected 1123 price target is at the daily 1*2 Resistance Angle, and it had been notified for being worked off in early-February 2016. So, the current daily uptrend has reached now the 1*2 Resistance Angle that springs from the important October 2015 countertrend high: ==> a natural countertrend target in the daily time frame.

In addition, this natural countertrend target was reached rather exactly in terms of time. Thereby, all the preconditions in the daily time frame are fulfilled (price meets time!!), so the next powerful deflationary down wave in the direction to 1000$ can start in the course of next week = beginning of February 2016.

For the negative forecast, it keeps being weighty and important that the month of January 2016 DID NOT SUCCEED in closing within the important 1123 GUNNER24 Monthly and Yearly Resistance. Neither succeeded gold in producing any daily close above the 1123 nor any weekly close above the 1123 so far in 2016. Thereby, the following keeps being valid and above all, newly confirmed: The 1123 is and keeps being the most important resistance for the year 2016!

The excerpt above explains and describes the importance of the 1123 for 2016. The last time I pointed to the significance of the 1123 for 2016 was on 12/20/2015. The importance of the 1123 resistance for 2016 was first worked out on 08/02/2015. Just click to the link to learn more about that. Caution, it’s a lot of mathematics!

Ok, 1123 keeps being confirmed main resistance for 2016. A main horizontal resistance for the entire year 2016 (and also the following years, of course…) In the month of February 2016, the 1123 resistance horizontal and the very most important resistance of this bear market will end up coming together in a probably epical way. The meanwhile 7th test of the ruling double arc resistance will ensue: