Silver 10% higher again? - Gold in Breakout Mode

Getting to new peaks last week was the way the precious metals reacted to the world-wide dominating uncertainty after the quick Japan-shock sell-off.

The day before yesterday gold marked a new all-time high – silver joined with a 31 year high. Today, I’d like to go into the monthly constitution of both metals getting you into the right mood for further peaks.

Yeah, higher again it is going, in spite of the relatively overbought markets. Talking of silver, starting from the Friday closing price almost 2 more Dollars will be possible, maybe even 4$ before some most significant setbacks shall happen.

Certainly, silver is being one of the hottest commodity games of the world after all, showing a lot of internal force. For nearly two months every little low however small it may be has been bought by the bulls. So at least 39.10 - 39.20 will be reachable in the course of April:

The actual monthly 8 Candle GUNNER24 is showing that silver is standing closely in front of the important 4th double arc. The March high was marked near the resistance Gann Angle that is having a certain resistance effect but not having been touched yet – that’s why it’s going on being target.

Just pay attention, please, to the orange circles at the corresponding highs or lows, respectively, of the month candles. Silver has been conducting almost exemplarily working off the important price and time magnets faithful to a cent. Why should there be a change all of a sudden? – So we’ll have to assume that there won’t be a significant counter reaction before the resistance Gann Angle or any price and time magnet of the 4th double arc (lower or upper line or upper square-horizontal) are touched.

Moreover, in the monthly time frame I found a correspondence for the target 39.10 - 39.20. That makes us all pretty secure as far as our target is concerned! On this score, please pay attention to the note above showing where we may apply another up setup in the monthly 8 Candle GUNNER24 Up:

The February low of 2010 is where the 5 candle initial impulse started; since the breakout of the first square the silver ascent has been proceeding smoothly and steeply. As the 4th double arc was broken the 5th double arc is the next target. The lower line of the 5th double arc is lying at 39.10. So we can analyze a target correspondence at 39.10 - 39.20. Thus we’ve got the double security that the target shall be fulfilled. There’s no Gann Angle being in the way of silver, the price is in the upper half of the just passed square having no important resistance ahead apart from the 5th double arc.

Do you still remember the monster setup that accompanied us during the last weeks constantly providing tangible and profitable signs? Here it is again to take a look at.

The actual state of the weekly 21 Candle GUNNER24 Up:

Last week closed within the 4th double arc after two weeks of resistance by the lower line of the 4th double arc (uppermost red circle). Specifically it means that in all probability the 5th double arc should be approached at 41.20. Each break through the 4th double arc will activate the 41.20. That break is what we’ll buy. The silver trend has increased again! The resistance Gann Angle the overcoming of which had been providing resistance for years, as it were, was evidently broken in the fourth (!) attempt. Beside the 36.00 it should function now as a strong weekly support. It will lie at 36.80 next week. I mean by the Thursday and Friday lows that mark was tested violently, and now it doesn’t only seem to provide daily, but also weekly support.

The next weekly target of 41.20 is supported by the very long term monthly 13 Candle GUNNER24 Up. However at 39.10 as well as at both short term monthly setups a very big resistance is to be made out!

Here again the 41 are lying within the next target being the 3rd double arc. The lower line of the 3rd double arc is at 40 for April, but it should rather provide just a common “round” resistance. The main target for long term investors is at 49.50.

The silver forecast of 03/06/2011 predicting a top at 38.15 - 38.20 was quite a hit. The 31 year high of Thursday was at 38.18!

Please, do really read up in the GUNNER24 Forecasts, Issue 03/06/2011, which way we derived that top with help of a special GUNNER24 Advanced Technique!

Now I re-adjusted that daily 8 Candle GUNNER24 Up Setup in terms of price and time:

The fact that the adjustment fits is being recognized in the orange circles where silver is meeting some significant price and time magnets and of course in the 36.70 and in the conduct at the 3rd double arc. Silver spiked into the 3rd double arc already but it hasn’t closed within the 3rd double arc. It’s a first hint that the 41.20 want to be reached. The rebound from the 3rd double arc is not significant. It’s rather looking like a consolidation at the highs. (Rule: Consolidations at the highs break to the upside!) In the face of the important top that consolidation is supposed to last a while but not to fall too low. We’ll buy every break of the 3rd double arc. After a successful test at the horizontal support at 36.70 (also at the weekly support and near the monthly support) or after a successful test of the support Gann Angles the braver traders may go long with a narrow SL.

Conclusion: Well, in scalping or in intraday and day trading, or in swing trading you may go on speculating long making a lot of money. Any possible monthly GUNNER24 Setup would point to that. Also the weekly monster setup and the daily setup point to a continuation of the upwards trend. The entry points are formed by supports which are lying the very narrowly below the price at A) 39.80 - 36.70, B) 36.40 and C) 36.00 and of course the significant breaks of the double arcs in the daily and the weekly time frames. After being broken the 38 a very significant resistance at 39.10 will be to be expected – where really a counter reaction should follow. Medium-term target after overcoming the 39 will be 41.20.

After the high-flyer let’s go to the gold now which seems to be pretty dull compared with the actual silver dynamic. But that MIGHT change very soon! Let’s consider first the monthly 8 Candle GUNNER24 Up we analyzed last in this issue calling your attention to the important monthly resistance at 1442:

The 1442 resistance kept on not being overcome. Well, it was tested on daily basis. The rebound from the all-time high was very violent on Thursday, several times before we’d seen just the same. But with the Friday closing gold is only about 1% away from the all-time high keeping on ready to break out upwards significantly. A March closing price over 1445 should be a clear sign that gold wants to go marching in the direction to 1576.

I’d like to show you in the following weekly 13 Candle GUNNER24 Up how important a break of those 1445 is also in the weekly time frame and how we’d be able to join trading the possible breakout:

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