Weekly gold target reached – Next monthly targets are 1071 and 1103, and 1320 until spring
After the impressive rally last week gold has reached its main target in the weekly time frame.
The fact that the targets in the weekly time frame were reached that fast makes clear: The administration and the FED are working consciously towards the sale of the US$ in order to reduce the debt.
In the daily 5 Candle GUNNER24 Up, with the Thursday high we have reached the 5th double arc and we are preparing for a 2-3 Candle Daily GUNNER24 Down which we are not going to join trading but to use the targets which are emerging because of that to get into the market cheaper again.
In the monthly chart, next target now is the first red double arc (1100 -1110). If the storm goes on that way, that is to say if gold keeps rising along the actual Gann Angle until spring 2010 the 2nd double arc (1320) will be reached.
Monthly target for October is still 1071 and till November 1103 where a short little consolidation at the first red double arc will happen.
In the ES # weekly, for the last ride we let us stop in at 1089 on weekly basis if the horizontal square line is broken on the final price basis. ES # for the second time rebounded at the decisive Gann Angle with the price performance of last week. Within the 2nd double arc it is consolidating.
As a result, the price should go on orienting itself by the main target until reaching it. Backed by the bullish pennant the upwards trend should soon be resumed. Now, the upwards trend is entering soon into its final stage which in this third step is proceeding vertically.
On daily base we are long since 1036 (rebound from the first double arc in the 3 Candle GUNNER24 Down Setup on Monday with a classical rebound candle) and 1064 (break of the 3rd double arc in the actual GUNNER24 Up Setup on Thursday). First target for that swing on daily basis is 1122 at the end of October.
With our forecasts, I would like to expand a little bit on the market leaders in the weekly time frame so we get a feeling for our actual position in the rally and for the question how sound is the rally generally speaking.
Copper – the indicator for the economic situation
Copper is preparing its approaching escape above the 5th double arc, but it will take maybe two more weeks until it succeeds finally.
Google – the Internet and marketing indicator
Google is running straightaway to its main target where a little consolidation is to be expected before it goes on upwards. You can recognize that we might place another 8 Candle GUNNER24 Up Setup at the orange marks which will suggest the targets for the further price course after we will have left the 5th double arc in this original 3 Candle GUNNER24 Up.
GS – Financial Market Indicator
Goldmann Sachs, too, has still some room upwards. At 200 the end of the whole swing should be reached definitely. As everybody knows the financial markets turn first. According to today's analysis down target is 120.
IBM – Dow Jones Indicator
IBM has still has still a lot of room upwards. After a re-test of the 3rd double arc and the impressive rebound from the upper line of the 3rd double arc the further 20 per cent upwards potential was clearly confirmed.
All in all, the market leaders are looking very sound. Well, they are important pillars which the actual stock market rally is resting on. Taking into consideration that copper is soon going to re-accelerate, the gold train is under way already, the US$ has still its target of 72 ahead we can expect plenty of profit in many markets speculating on long entrances and always renewing the dip buy. Within the markets we observe, USD/JPY is the only one which is completely on short.