Gold aims 1100$

The round 1100$ is supposed to be worked off by the end of March, beginning of April. The former bear market low is at 1130$ not being likely to balk much.

Whether the 1100$ is going to stop somehow leading to a next several- week upwards bounce = countertrend in the bear market remains to be seen, as there are increasing signs that since the January 2015 highs gold, silver and platinum are in a panic cycle reckoned to persist for several months – as illuminated in detail in the

GUNNER24 Forecasts, issue 02/08/2015, „Gold – Disillusioning – Again“

and

GUNNER24 Forecasts, issue 03/01/2015, „Platinum targets 748$ now“

likely to lead gold to at least 1000$ till September 2015, perhaps to 800$ till the beginning of 2016 respectively platinum to at least 748$ till at the latest March 2016. All in all: The panic cycle is indicating its presumed end between September 2015 and March 2016. One day or other in this stretch, the bear market lows for gold and platinum are to be expected.

In the GUNNER24 Forecasts, issue 11/09/2014, „No mercy, 15, 13, 11 and 7 I dealt with the price-and-time targets of the silver bear. One option of this silver analysis is that silver shall deliver its bear market low in the space from late spring through summer 2015.

Which way and why panic cycles arise and how to range them in the total picture is consigned by this splendid description on www.investopia.com:

Source: http://www.investopedia.com/articles/stocks/10/5-steps-of-a-bubble.asp.

Back to gold now and the soon upcoming 1100$. In the GUNNER24 Forecasts, issue 02/08/2015, „Gold – Disillusioning – Again“, I suggested that this weekly down setup has currently an important signaling effect to the further course of gold:

This setup gives us the signal when the trip to working-off the 1000$ mark is supposed to start. The processing of the 1000$ is a compellingly necessary target – the minimum price target – for this bear. I urge you to look up again in the GUNNER24 Forecasts, issue 02/08/2015, „Gold – Disillusioning – Again“ why is that.

A month ago, there were but 2 options left for gold. Given the level of 1233.30 then, gold might either have newly chosen the way upwards to work off the maximum target of this countertrend move between 1318 and 1325 in order to test the 1130$ afterwards, aiming at 1000$ subsequently – or it might rather promptly have lost the support of the lower line of the 3rd double arc, combined with the important 1200-1222 GUNNER24 Monthly Support Horizontal, in order to aim at the downtargets directly. The latter happened.

Here now the current state of gold in the important and dominating weekly 19 Candle GUNNER24 Down:

Two weeks after the last analysis, gold closed significantly beneath the lower line of the 3rd and the 1220-1222 monthly support. Thus, a sell signal towards the next important downmagnet, the 1102, was triggered. 1102 is the horizontal that springs from the intersection point of the upper line of the 2nd double arc with the starting point of the setup. 1102 is near to the round 1100$. Thereby, the 1100$ is clearly the next target…

So, two candles before the present candle, an important combined weekly and monthly GUNNER24 Support region broke. All the same, at least from my point of view, it was still possible that this first sell signal was matter of a false signal, since the current as well as the last candle at the highs were fighting for the 1220-1222. If the current candle had re-conquered the 1220-1222 or at least closed near to this mark, everything would have been going smoothly. Last Friday, all dams broke instead.

==> Sometimes, you just can’t believe what is acting out in front of you, with what a fierceness a multitude of important GUNNER24 Support Magnets are being smashed, willy-nilly. It is as if you experienced a family member being slayed by a jumbo jet. You hardly believe it, you just can’t imagine what you experience, see and feel. You have to consult your pillow for 1 or 2 nights to reason out and digest the near and far consequences.

This is what happened with gold on Friday and the disgusting weekly close and with me over the last two nights. A jumbo jet fell on gold. It is dead. Really, there are no other means of interpretation left to me. Miracles can be hoped for, maybe. The signaling is different however. The downtrend is supposed to accelerate again. It seems to be in the confirmed panic move.

This multitude of magnets on monthly and weekly base were shredded, smashed, purged in the course of last week:

The monthly 1220-1222 support was tested back at the weekly high. The test result was negative. The bounce from the 1220-1222 also led to the break of the next lower 50$-GUNNER24 Support Horizontal in the monthly time frame at 1172. The week closed at 1168.20 and therewith significantly below this monthly horizontal. Thus, the 1172 is again weekly resistance, for the time being. By all means, next week is going to test back the 1172, but it is almost impossibly able to close above it (from 1178 and higher) significantly!

Now to the vast amount of broken weekly supports brought along by the Friday sell-off:

The Resistance Angle, broken upwards significantly in January 2015, had to be given up again. Very, very negative! The Resistance Angle stood for the entire year 2014. The fact that it was not defended after just a few weeks in 2015, not even at the first back test, shall make accelerate the existing downwards forces.

Simultaneously, the 1*2 Support Angle starting from the current 1130$ bear low – I called it ATL 1*2 Support in the chart above (ATL = all-time low) – could not be held at the second test. That means, the existing downwards forces are supposed to keep on accelerating.

Technically, the Resistance Angle, together with the ATL 1*2 Support Angle, are representing a strong cross support for the week. This one has fallen significantly as well, so the existing downwards wave is supposed to keep on accelerating…

==> All these Gann Angle sell signals are activating now a test of the important Support Angle visible in the chart above (green/yellow ovals). It was main support for 2014 being supposed to be main support for 2015, too. Visibly, the Support Angle is taking its course below the round 1100$ for the further months. Well, the 1100$ isn’t either supposed to provide support for a long time, thereby, if at all. Depending on the moment when gold breaks the 1100$ downwards, it shall reach the Support Angle till April 2015 at about 1072-1065.

==> If gold actually reach/tests back again the ATL 1*2 Support Angle at 1180 next week, go short!

Also the signals respectively supports of this weekly 14 Candle GUNNER24 Down Setup would let gold margin upwards yet.