Up or down? – Both sides of the medal

Last week, during five successive days prices were rising. Until now, everything boils down to a Gann Angle Retracement at the 1*2, 1*4 or 1*8 Gann Angle, as planned.

There, since the middle of next week we are going to look for a long term short entry because then during 8 successive days we would have a rising market giving us a classic reversal sign if the former high will not be reached. There at the Gann Angles, we will not seek the aggressive entry but wait for a reversal candle.

There, we will maybe cover our 1042 longs entered on Tuesday with the reversal candle. Later more...

Also, by the weekly candle the lower Weekly Bearish Rising Wedge was tested back. Together with the negative divergences, that gives us a clear short signal for the next week, as well.

But we think the market will go higher the next few days, so we may have seen a false break!

However – and now I get onto the subject of the two sides of the medal – there are also many signs which advise us to resume the rally.

1. According to our trading rules, in case of a strong trend we can assume that the corrections within the trend end at the blue arc, the 1st or 2nd double arc. Accordingly, there is the narrow stop at the possible Gann Angle Retracement High in the Daily GUNNER24 Down.

2. The following 8 Candle Weekly GUNNER24 Up Setup which is valid since March, 2009 gives us two pretty clear positive signals:

In the weekly chart, the thing is to be precise, in our GUNNER24 Up Setup, obviously from the square diagonal we rebounded upwards and even closed above the 2nd double arc again which might have triggered off the booster for another ascent to our main target. See the 11/02/09 Forecasts.  

If accordingly, the stock market on Monday or Tuesday already is going to rise in an extraordinary scale and reach 1080 the short entry will have died and with a weekly closing price of more than 1089 we will go long.

Here, the lower 4 hour time frame helps us along:

In this 8 Candle GUNNER24 Up the 2nd double arc is especially significant (see the rule above). If it breaks upwards and 1080 is reached we will have the first warning signal to think “long” again.

3. Furthermore, there are many signs for the rally to be continued...: The season aspect, the winter is on its way – as to our experience the top of the year comes late if early in the year a significant low was marked – and the monthly GUNNER24 Up Setups in gold, EUR/USD and copper.

4. If for further orientation we cite the monthly gold chart we'll see we have arrived at our first target of the first double arc thus reaching a minimum target where we always have to reckon with contrary price moves. There, at or since 11/11 we will be expecting the next significant top and after a little retracement we will get back to the market less expensively. That again might support our daily short in the stock market.

So we are geared up for another 3 day gold rise. We are likely to reach the upper line of the first double arc (1130) next week.

That's indicated by the situation in the actual 4 Hour GUNNER24 Up Setup: