Gold in the Streets

By the course of the week, gold confirmed once more its parabolic move being 1320 the price target we are expecting for the week from 06/21 to 06/25/2010.

This is how we forecast gold for the last trading week:

The supposed price spread of 1198-1229 was met exactly. At the beginning of the week gold rebounded from the predominant Gann Angle marking its obvious week low at 1198 on Friday which offered us another outstanding long entry.

On closer examination of this weekly Elliptical GUNNER24 Down Setup for gold (read here where we deduce that from…) we realize that next week the breakout of the four week  consolidation phase of the all time high is supposed to be on the agenda. The gold future contract is jammed between the upper line of the red double arc and the Gann Angle that is lying above the price. Many things would seem to indicate a speedy break out upwards, now. 

1. Rule: According to Gann, the forth time round the Gann Angle that presents resistance ought to/should have to break.

2. Rule: „Consolidations at the highs break to the upside“.

3. The support of the double arc is extremely strong. Friday, again was an example for how precisely the upper line of the double arc gives a mighty support (one more green square). Within a couple of trading hours the gold future shot up from 1198 to 1221.

4. The temporal support of that double arc will obviously last until the week of 6/21 to 6/25/2010.

5. Within the 4 and the 8 hour time frames some important resistance double arcs were broken indicating a gold price of over 1300.

6. Generally speaking, the Friday reversals are always to be judged as positive.

7. The following daily 3 Candle GUNNER24 Up Setup gave an impressive buy signal at 1198, too:

US stock markets – stay out if you doubt

In the GUNNER24 Forecasts last week we stressed that in case of a closing price of under 1067 in the S&P 500 we would go short. That mark was undercut by the Friday closing price. All the same, we did not press the short button. I'd like to deal in depth with the brief hint on the actual situation we gave in the Member Area:

As you know, we have been working with this weekly 7 Candle Elliptical GUNNER24 Up Setup for weeks:

On account of this GUNNER24 Setup, last week we came to the following assessment of the situation: “Daily: Long above 1103 - Short below 1067”. Actually, everything should be clear. Obviously, the primary Gann Angle was broken the forth time round. So the price is in the bearish half of the setup from now on. Actually, everything is at short.

But during the week a valued reader of the GUNNER24 Forecasts sent me this GUNNER24 Setup which brought me to the following interesting realizations:

1. We recognize unmistakably that the lows of the last weeks oriented themselves to the upper line of the 3rd double arc. The weekly candles clearly spike off that upper line when they reach it which unambiguously makes the upper line a “monster support”. 

2. We recognize a “new” important support at 1032. At the intersection with the upper line of the 3rd double arc, the Gann Angle below the price is forming an ideal price and time magnet at about 1029! Maybe the coming week will rebound there most intensely again!?

3. Watch the candle count blue 1 and blue 3. It forms a variant of the initial impulse that makes sense:

In our “old” 2 Candle GUNNER24 Initial Impulse on the left, last week neither the blue arc nor the horizontal line of the first square were broken. The price is sitting really provocatively on the horizontal line of the first square. In the count of our reader on the right the price has got even more space until the break of the first square. The targets which emerge from the break of the first square hardly differ. Those considerations have fuelled the first doubts about our 1267 short. 

Also the actual daily 3 Candle GUNNER24 Down Setup tells us rather not to decide for short yet:

Here, Friday is looking like a test – a very weak one I admit – of the upper line of the 2nd double arc. On daily basis, you mustn't go short before a break of the 2nd double arc. By the way, the possible main target on daily basis (3rd double arc) is corresponding perfectly with the targets of the weekly GUNNER24 Down Setup above! It is at 1000 to 1005 on 06/14. The allowed month low calculated in the last GUNNER24 Forecast is in that range, as well (1010)!

Also the following GUNNER24 is suggesting that the down swing might end on Monday or Tuesday.

The price simply does not manage to overcome the 3rd double arc. Even though our supposition was right that on the 21st day of the down swing a low would prove true, but only if on Monday and on Tuesday the orange support diagonal resists at 1049 to 1053 it will really be an important low. In case the orange support diagonal breaks, that will spell the end of the down swing at 1000 to 1010 on the 34th day (06/14).

We've got some different signals, but nothing is decided yet. It depends very much on Monday and Tuesday. If one of both days closes under 1050 a short on daily basis with target 1000 to 1010 will be possible since in that case we will have to work on the assumption that the down swing will last 34 days. Also a crash on Monday or Tuesday is possible, falling onto the 1032 or 1010 respectively, immediately recuperating the losses there. Anyway, the temporal sphere of influence of the 3rd double arc in the 13 Candle GUNNER24 Up Setup is dominant. It is going to last two more days. Such a sphere of influence uses to have enormous consequences on the prices nearly always. Quick moves into both directions, that means high volatility. Supports and resistances are broken, captured and rapidly re-conquered...

Most astonishing to me is the absolute uncoupling of the NASDAQ-100 from the Dow Jones and the S&P 500.