Here and now I’d like to say thank you for all the cheerful wishes on the occasion of Xmas and the New Year. Also for the stimulations and impulses, for criticisms and some approval we received by you, gentle reader and customer in the course of last year. Many thanks and to all of you a prosperous and healthy New Year!!
As mostly at the beginning of a month I’ll place the emphasis on the monthly GUNNER24 Setups to make sure we’ll keep track. But let’s begin with gold in the daily time frame:
The situation: On Tuesday the gold plot unraveled. The resistance diagonal that had been reigning for three weeks was taken by storm. As analyzed last week that resulted in a long entry (1406). The day after gold closed above the 4th double arc thus activating the main target, the 5th double arc, at 1420. A day of consolidation followed and then a strong Friday clearly broke the 4th double arc. With 1422 the main target is being reached already. We maintain our position tracing the SL on entry yet. The price course last week was extremely strong:
1. The primary Gann Angle was broken indisputably, at last it was re-conquered. That was a rare symptom of power. 2. In addition the 4th double arc offered little resistance. The primary Gann Angle was tested back successfully by the consolidation. That makes it a strong support for the next week.
In spite of the obvious power the Friday performance seems to me pretty odd. The speed of the price having reached the main target (1420) is a strong indication not to take the Friday as seriously as the market makers suggest to. Window dressing, only a few market participants, poor volume… Copper and silver were pulled up as well. So watch out! It smells of a "surprising" change on daily basis. Anyway…the GUNNER24 is putting out a new all-time high at 1442 now in the 2 Candle GUNNER24 Up. 01/7 or 12/2011.
The weekly 5 Candle GUNNER24 Up is indicating that a mini correction might we waiting as early as by opening.
In the last issue I just realized the complete analysis of the weekly gold setup. Please look up here.
Therefore today we’ll just have a look at the actual state: Here again the mighty resistance diagonal was broken by a long candle last week. A strong sign! There was a leap almost until the resistance horizontal of the just passed square – at 1424. That means at 1424 we would actually have to reckon on a reaction on daily basis. It should be a very mild one, about 1410 (primary Gann Angle, see above) because in the weekly setup gold is clearly heading for 1474 (end of February). We’ve certainly seen the starting signal of this run. If the 1424 is taken in the 4 or 8 hour time frame the 1442 shall be reached very quickly.
1442 und 1474. These targets are to be seen in the monthly 8 Candle GUNNER24 Up as well:
1576 continues being the main target in gold. 1442 is the expected horizontal resistance of the just passed square. So it’s a relatively powerful resistance where we’ll have to reckon on a violent correction. The 1474 are threatening with the setup-anchored, upwards directed resistance diagonal. For months gold has been supported by the primary Gann Angle which marks the steepness of the rally. Let’s zoom into the actual events:
With its top the November Candle still rebounded from the resistance diagonal which came from left above (red arrow). And December closed above that. So this diagonal turned into being a support diagonal. We can make out a first important January support at 1408, that’s where the primary Gann Angle proceeds upwards. On this score pay also attention to the intersection with the 1410 in the daily setup (primary Gann Angle)! For the last two months the market has been falling pretty short of the monthly primary Gann Angle (pay attention to the two green arrows). That falling short will be possible in January as well. There is a very strong support at 1386 – orange arrow. Some more long term long entries are suggesting themselves there.
Last week silver had a similar course as gold. Accordingly it is presenting a similar outlook:
It’s almost on the touch, it should really correct one of the next days in order to pick up speed again at 29.90 (thick red and thick green arrow). Silver re-conquered its primary Gann Angle the same way gold did. The closing price within the 4th double arc confirmed the main target of 31.75. Here again the trend seems to increase. The 4th double arc was reached earlier than it would have been in case of a normal course of prices. All those are very, very strong indications of aiming for the 31.75 rapidly. But: Above the price the upwards running red dotted resistance diagonal is limiting the rise.
And…silver is going upwards in a wedge – so the chances are rather bearish. We’ll have the market make the decision: In case of the break of the 4th double arc we’ll go long with target 31.75. That may happen as early as by the beginning of the week, but the "logical" course of prices with a relapse onto the 29.90 would be sounder being the Gann Angle below the price an obvious target.
In the GUNNER24 Forecasts, Issue 12/19/2010 we called your attention again to the fact that the 31.05 represent a logical price and time magnet in the monthly setup. This magnet, the lower limit of the main target, is lying at 31.10 for January. Closing price on Friday: 30.93. So hardship is threatening.
As early as on Monday silver could turn at these 31.10 because it is pretty unlikely that this important mark will be taken in the first attempt. The upper limit of the just passed square is lying at 31.75, the daily target. The Gann Angle above the price slowed down the ascent for December. But: If the uptrend continues like this with the new month candle it allows a new calling for that Gann Angle. Possible January top: 32.23. With the 31.10 the monthly main target in silver will be reached, and from now on we’ll have to reckon on some violent corrections in monthly sight. But taking into consideration the daily and the weekly setups silver should go at least to 31.75 or rather 32.23 and gold until 1474 before we’ll have to think about a longer term correction "seriously". The 28.75 mean a very strong monthly support. Long term positions may be built up there!
Two long entries on month level in the US stock markets!
This doesn’t happen so often. Monthly signs are the more important because of that reason. In both indexes the 2nd double arc broke clearly with the December candle. The main targets of 1378 in the S&P 500 and the 12537 in the Dow Jones respectively are activated now. They’ll be reached until the beginning of next year. Correspondingly for 2011 we’ll go on looking for long entries on daily and weekly basis. The trend is your friend!
The closing price in the S&P 500 above the primary Gann Angle is pointing to an acceleration of the uptrend. The Dow Jones closing price exactly at its primary Gann Angle indicates likewise that we are in a strong upwards trend. The monthly indicators are not overheated yet, and the main targets (3rd double arc) in both indexes are confirmed. But in daily and weekly sight we are overbought unequivocally. So we’ll have to reckon on a long term correction. Please pay attention to the hints when to cover our daily and our weekly long positions, GUNNER24 Forecasts, Issues 12/26/2010 and 12/19/2010. The mark of 1267 in the S&P 500 should be an important release. The setup-anchored red dotted monthly resistance diagonal is taking its course there. Reaching that diagonal should release a correction during several weeks. On the occasion the prices may absolutely fall back into the 2nd double arcs in monthly sight without endangering the long term upwards trend at all. The upper lines of the corresponding 2nd double arcs and the lower horizontal support lines of the just passed squares at 1197 and 10710 respectively produce some logical supports.
Here in Germany some market participants were caught on the hop because they had placed on a year-end rally. The Dax brought in pretty high losses during the last trading days, unexplainably for many of them. That correction was the first forerunner of a correction in the US markets!
Well, I rummaged in my treasury box and I pulled out a genuine jewel for you to demonstrate what GUNNER24 is able to do. My belated Christmas gift, for the public as it were:
The harmony of the market GUNNER24 depicts for us is unique sometimes. It’s often unimaginable and hard to understand. Pay attention to the important orange marks and all the important green marks respectively where price and time coincide and go well together.
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A profitable 2011 to all of us!