Is the blow off going to continue?
Don't we deserve your giving us a little pat on the back? Our forecasts in the stock markets and in gold have been right for months. When it was a question of the expected January high (GUNNER24 Forecasts, Issue 12/20/2009) as well as in the moment when it was a matter of finding the perfect long entry in the stock markets and in gold on the expected lows of 02/05/2010 (GUNNER24 Forecasts, Issue 02/07/2010). As for the last issue, the GUNNER24 Forecasting Method enabled us again to recognize the coming break out and to join trading it.
With the break out of last Monday we were able to expand on a further long position that is hedged in the Friday low.
With Friday closing above the main target, now the final target of the (then) one year upwards trend by the end of March/beginning of April has been conclusively activated. Since the price is at the daily main target which has not been broken yet and since in the 1 hour and 4 hour charts the price is at or closely below the main target for next week I am expecting a retracement at least until the chart-anchored Gann Angle. Furthermore, Monday will be the twenty first day of the up swing. But if we produce another runaway gap on Monday the further targets will be clearly defined, anyway...
Not only the setup in the S&P 500 but also the equivalent 3 Candle GUNNER24 Up Setup in the Dow Jones Futures Contract seems to indicate a further quick rise. As we are in the acceleration zone next week will be hectic and volatile. Really just two possibilities are conceivable, here. First: Immediately march through 10.700. Or second: A rapid back test of the 2nd double arc with the following or simultaneous second test of the 2*1 Gann Angle and then resumption of the up swing. A break through the 2*1 Gann Angle may be used for a two to three day short entry.
Since Monday will be the twenty first day of the up swing and since we should always expect an extreme point there, the 10580-10600 in the YM # is suggesting itself as to be the top.
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Let's analyze both precious metals, gold and silver, in conclusion.
Well, on daily basis, last Tuesday we opened the 3rd long position (break of the first square). The up swing finished at the price and time magnet (point of intersection lower line of the first double arc and Gann Angle) on Wednesday. The following mini correction is stopped by the primary Gann Angle. We can see that the price will be jammed much worse between the primary Gann Angle and the first double arc on Monday. That condition has to disperse into one direction. Since gold is in the upwards trend we are expecting a break out upwards. A daily close above 1144 will activate the next target at 1180.
Talking about silver:
With silver, in February a successful second back test of the first double arc took place. January closed on the upper line of the double arc. February opened there and closed nearly below the middle of the second square. It is really great that in February the significant low was marked on the important time line. A clearly bullish signal! Thus, with the price performance of the last months plenty of energy was accumulated to drive the silver to closely below 19 US$ again in May.