The last puts out the light

The gold triple low generated by the beginning of the week was not supposed to be a matter of a lasting low. Thereby, the triple low MIGHT be broken downwards just at the next test. Next week, a new test of the 1180 region might take place, thus, as early as next week going on the down move. The 1183.30 triple low is most likely to hold now for several weeks, however!

After being broken the 1200$ mark under high volume on Friday 10/03, a test of the 1180 environment and the previous lows had to occur. In terms of signal technique it was inevitable. Besides, it is out of question that nearly nobody grabbed the opportunity. The majority of the market participants didn’t make a large killing either at the absolute 1183.30 triple low that was produced shortly after the weekly opening, let alone the subsequent hours. Hey, as the Big Boys don’t even recharge at such an important test, such an obvious test, so when will they?

Well, I think with the brutal September course the Big Boys succeeded a lot definitely. They covered the short positions they had built up massively at the beginning of September, through the 1200$ (beneath 17$ in silver) area. They were able to generate sustainable and brutal sell signals in gold and silver now seemingly waiting and seeing how far the now running pullback will develop, in order to attack again at higher price levels:

In gold, with the September candle they succeeded in breaking sustainably the 1*1 Bull Market Angle, starting from the 2008 low. Thereby, the uptrend move ongoing since 2008 has officially drawn to an end. Just for reminding: As long as a market is going and taking course above the 1*1 Angle the markets are situated in the bull pace. When the markets are trading in an up setup below the 1*1 Angle they are in the bear market territory.

After W.D. Gann’s body of rules, the final break of the 2008 1*1 Gann Angle in September 2014 has now activated the next lower important Gann Angle, the 2008 1*2 Angle, as downtarget.

The 2008 1*2 Angle is thereby likely to be reached respectively worked off till autumn /winter 2015.

From April until November 2015, the 2008 1*2 Angle takes course between 1000 and 1022. In November 2015, the magnet with the highest negative force of attraction is where the 1022 support horizontal - starting from the lower line of the 2nd double arc – intersects the 2008 1*2 Gann Angle.

The 1183.30 triple low reached the upper line of the 2nd double arc rather exactly to a T. As there is some visible upwards dynamic to be seen since the low, the upper line of the 2nd is clearly confirmed as monthly support. The upper line of the 2nd is most likely not to be lasting and durable support however because A) the buying activities = volume remained between 1183.30 and 1190 last Monday and B) the week volume of the nearest GCZ4 future contract was pretty measly, so as consequence out of this volume analysis C) no panic = exhaustion at all was to be recorded after Friday 1200 break!

Ergo, the upper line of the 2nd double arc will respectively should break sustainably, I mean finally some day in the future… that would clearly be another monster sell signal on monthly base.

The touch with a monthly support always opens the possibility of a rebound/pullback/countertrend move.

The setup above is showing that the now possible upswing may lead up to the test of the 2008 1*1 Gann Angle since this is the magnet with the strongest attraction above the current price level. Thus, the pullback may thoroughly test back the 1272 until the end of October/beginning of November = Kiss of Death!! Perhaps it will even approach the 2011 2*1 Resistance Angle again.

This angle starts from the 2011 alltime high, not even one time being touched directly in 2014. All the market has ever achieved was approaching this powerful resistance magnet. Thus, the possible pullback may last till November 2014, the 1298 going narrowly below the 2011 2*1 Resistance Angle! From one of both up magnets - if really reached – the next hefty selling wave will be supposed to start whose interim targets will first be the upper line of the 2nd double arc and then the 1122 (important GUNNER24 Horizontal Support) respectively 1090 (lower line of the 2nd).

By this course, just later, gold would replicate what silver has attained already with the September 2014 course in its valid down setup on monthly base. It’s the sustainable break of the upper line of the 2nd double arc support:

The September candle has not only broken sustainably the upper line of the 2nd double arc support, but also the lower angle support and the lower line of the 2nd double arc were activated as target by the final break of the 2008 1*2 Angle. September 2014 thereby delivers a double sell candle = double sell signal. Thus, some further lower lows are almost inevitable!

Since September closed within the lines of the 2nd double arc, now the lower line of the 2nd double arc is finally activated as the next important down target. I think, the lower line of the 2nd should be headed for and worked off in spring 2015 close to 15.25. At 15.25, an important Gann Angle support – likewise started from the 2008 low will intersect the lower line of the 2nd then.

Before these new lows show, again a stronger rebound/pullback/countertrend is likely respectively allowed to happen. For simultaneously with gold, with the September 2014 lows and the course of the initial October days, silver has also reached important GUNNER24 Magnets that some former supports being now powerful resistances are being tested back now on monthly base.

After all, with the 1183.30 October lows gold touched down at the upper line of the 2nd double arc. Silver worked off the 16.95 support horizontal with its September 2014 low, closing September above this GUNNER24 Horizontal. Also the October opening being situated narrowly above the horizontal shows that this horizontal is somehow important for silver. Moreover, the current October low touched one of the Gann Angle supports = 2008 Support 1 that can be derived from the 2008 low. From the current low at the 2008 Support 1 Angle, visible upwards dynamic have developed!

==> Thus, we may state that SIMULTANEOUSLY in gold as well as in silver at the current lows some important magnets in the monthly timeframe are reached permitting a several week up-move because these important monthly supports just SEEM to develop upwards dynamics SIMULTANEOUSLY.

==> The most attractive pullback target in terms of price and time in silver is clearly the now finally broken 2008 1*2 Gann Angle that takes course at about 18.65 for October and November 2014! At the latest after an approach of the upper line of the 2nd double arc (for November 2014 at 19.10) should be an end of the bulls’ hope that speculate for a lasting new uptrend.

In conclusion of the issue let’s have a brief look at the weekly time frame. This one permits deeper insight what the possible pullback course according time and price might look like. Example gold:

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