Gold ends the week strong like an ox

With a Friday in trend, gold closed the week at the all-time high. For 10 consecutive days every day-high was higher than the other. For 10 contiguous days there were higher closing prices. We were confidently signaled that the current upswing originating from the July 1st low (1478.3) hasn’t ended yet, but it should extend at least through Tuesday or Wednesday. We’ll have to await at least a 13 day initial impulse on daily basis. Please read up the derivation of that in our last issue.

Really uncanny are the corrections within this upswing, in effect they don’t exist. As soon as gold is parking below a resistance mark pausing underneath for a couple of hours every dip is being bought, so gold is pushed up again to the next floor, up to the following resistance mark. In addition we see some new all-time highs in the relation of EUR/gold and GBP/gold. JPY/gold is supposed to be following soon.

This conduct means that the market participants are preparing for something quite big:

Scenario 1: Of course: They are afraid of the default of the United States, but indeed they’ve been for years. But possibly in this phase they are anticipating the default more intensely than they used to before. Maybe even the big banks are buying gold now grossly by order of their respective governments – I mean especially the Europeans and possibly the same US government… the cue is gold-backed currencies. Maybe the truth is beginning to dawn on the governments, that the haircut of national debts of some EU countries ore some US federal states seems to become inevitable now. At least here in Germany the haircut of Greece is being assumed for sure. In case this scenario is going on being confirmed the ascent of gold up to 1830$ and more until the end of the year will happen positively.

But, naturally, if we want to survive in the markets we should always reckon with a mighty fake!

Scenario 2: The default of the USA can be headed off, gold and silver turn into the correction mode next week or the week after next leaving the boys in the rain who have stocked up on plenty of gold in the course of the year, because the general battle situation will have relaxed. That would mean that the highs in gold and silver being formed now would be lasting for a long time. Don’t think that I consider this scenario as to be more likely than the other. We should just keep it in the back of our minds. And we should simply scrutinize the arisen price developments sometimes, because the markets mostly produce losers.

GUNNER24 indicates exactly the mark where we can recognize from which point on the "final" system default of the individual states or many states cannot be averted any more: It’s 1625.

From a monthly closing price of clearly more than 1615 (1625 or so) onwards the avalanche will start moving. We can derive what would happen with the currencies of the individual states – it’s written in the textbooks. I wouldn’t like to picture to myself what would happen in the streets during the coming years in that case. 1625 would activate gold prices over 1800. It would be a quick, tough move, without considerable corrections. Gold remains at the monthly horizontal resistance at 1590. With the week closing at 1594 gold once closed above that once. In monthly sight the upper line of the 3rd double arc at 1615 may be reached as early as next week already.

This is where the decision on the valuation of the general battle situation will be made. This is where the default of the USA may be averted (actually everybody expects that) gold being rejected there very strongly ==> everything was just panic-mongering, the last idiots were driven into the safe harbor, thereupon gold will fall deeply because it will have been rejected by a strong monthly resistance.

But – looking at the conduct of the candles related with the red X Gann Angle we see that this one is followed upwards by gold swinging around it, even willing to re-conquer it in July. Thus we are shown that the upwards trend dominated by the Gann Angle in price and time keeps on leading the fashion. Since the trend is your friend gold should have initiated an enormous ignition 10 trading days ago which should drive it inescapably to 1800. Well, the scenario 1 will occur. GUNNER24 is anticipating so at the moment.

In weekly sight there was a long signal:

Here’s the weekly 13 Candle GUNNER24 Up. Let’s consider first the last two week candles. Virtually in one go they re-conquer the 2nd double arc, which has been carrying out resistance for months. That’s a strong sign. Just use your chart-software scrolling back year for year in the weekly charts. I’ve never seen two weekly candles together showing absolutely more price rise than these two candles. Last week closed above the upper line of the 2nd double arc without breaking it clearly. It is still in the lost motion of this double arc. The resistance in the monthly time frame is still braking gold in the weekly chart. My interpretation is this: Gold will have to head for the resistance Gann Angle again. That one is simply a magnet gold has had to head for again and again during the last months. So it has to this time, I think.

For next week it’s lying exactly at 1611. If gold goes above it the horizontal resistance at 1622 will be brought into play. These two weekly resistance marks reflect – as it were – the 1615 resistance in the monthly 8 Candle GUNNER24 which is always rather an area, considering the lost motion. Around the 1615 in the monthly there is a resistance area which not only begins under 1615 but also stretches above the 1615. The weekly setup is so to speak decoding this resistance area: The first important resistance is at 1611, then at 1615, followed by 1622. That’s why I can analyze that a monthly closing price of more than 1625 where the next monthly GUNNER24 long signal will be on the agenda.

From that point on we’ll be able to invest very safely long-term because there is a 70% of probability that the next long-term GUNNER24 Target will be headed for then. From a monthly closing price of more than 1625 on we can be very sure that we will be allowed to buy any lower correction on daily basis… and we will for several months. From 1625 the upwards trend will be going on, we mustn’t go short any more!

You certainly see that in this setup no "clear" break of the 2nd double arc has taken place, considering the lost motion.

To assess better this lost motion in the present setup we’ll install a new 5 candle up setup at the low of the candle that is touching the Blue Arc:

We can see that a clear break of the 2nd double arc occurred within this setup which confirms the long-signal in the long-term weekly 13 candle setup. On weekly basis we see here nearly the same marks as in the monthly setup: Important support at 1566 (in the monthly one at 1560), then clearly the actually valid week resistance at 1594.5 (in the monthly one at 1590.8) and then the 1608 which is almost touching the monthly resistance area 1611-1622.

If we include silver into our considerations now

The Ugly Monster at first tells us 41.80! The 4th double arc that gives resistance was clearly broken last week: A buy signal. First target are the 41.80. I think there’s a great probability that this mark could be headed for within the next two weeks. Here again the resistance Gann Angle that has acted as an important magnet seems to be an important target. Next week, this one will intersect the 41.80 at the upper line of the just passed square.

With the break of the 4th double arc we know that by a probability of more than a 70% the 5th double arc will HAVE TO be headed for in the trend direction! In case the UGLY MONSTER breaks the horizontal resistance at 41.80 thoroughly 43$ could be the target of this upswing, at the intersection point of this very resistance Gann Angle at the 5th double arc (within 7-8 weeks).

The actual monthly silver setup:

The 4th double arc in the monthly silver setup is congruent with the 3rd double arc in the monthly gold setup. It has got a resistance function, but like in the case of gold in the meantime silver is quoting inside this resistance area. Here, too, there’s a Gann Angle (anchored above in the setup) which wants to be re-broken. This angle passes at 39$ in July. It’s the well-known resistance for which silver has been fighting the last days. Like in the case of gold silver closed above it on daily basis thus indicating a continuation of the upswing. It is first going up to 39.90 and maybe to 40.30.

A monthly buy signal will arise if the gray metal closes above 41$ - target will be the 5th double arc then and even more – new all-time highs!!

Conclusion: If both metals close above their respective actual resistance double arcs – silver above 41$ and gold above 1625 – so to speak a combined monthly buy signal in two different markets – seen on the whole that would be a confirmation of the "last days scenario"… Thus silver and gold would drag up all the precious metal, all the industrial metals and the oil with them. All in! On the other hand it’s still possible that one of the greatest fakes of all the times is taking place. The next important monthly resistances are analyzed and well-known now! 

You best register with our GUNNER24 Gold Trader now. That’s where we oversee the optimal entries and exits for you. Especially in the difficult market situations where many factors have to be considered the Gold Trader is backed by the additional GUNNER24 Signals based on the combined 1, 4 and 8 hour setups to catch the optimum entries and exits.

Be prepared!

Eduard Altmann