The big 4 in the precious-metals universe to wit gold, palladium, platinum and silver generate new and partially spectacular buy signals on Thursday and Friday. The liberation strikes in both currently strongest metals in the precious-metal complex – silver and platinum – are not only supporting the one of the complex that is sensed to be the weakest once more – gold, but pointing now to a longer lasting precious-metal rally/bounce till the beginning of September.
All the four mentioned metals are now most likely to be in a confirmed uptrend on daily base, for some higher daily lows have formed during the last bottoming process. Here are the potential uptargets till the beginning of September: Silver = 22.50$; Platinum = 1550$; Gold = 1387$. For palladium the maximum uptarget is 800$.
Let’s consider now in the daily time frame the 4 precious metals with their respective actual buy signals, their uptargets in price and time as well as their inner strength or weakness compared with one another.
Here’s a view to both highflyers of last week. They produced the clearest buy signals.
Silver – 2 candle up setup:
Finally: On daily base silver is indicating us the first confirmed uptrend of the entire year 2013! Higher lows are the only features for a confirmed uptrend. Last Sunday I was still supposing that silver would have to fall down to the 1*2 Support Angle to develop perhaps enough up-energy in order to be able to start a liberation strike. The visible rebound from the 1*2 Support Angle on Wednesday (green circle) cemented the higher low on daily base. The rebound energy from the 1*2 is extremely strong. Thursday showed the first "double buy candle". The purple daily trendline and the resistance of the first double arc were closely overcome in one go. On Friday the next powerful buy signal being the next double buy candle followed. In one go the metal came off the first double arc resistance, in addition re-conquering the 1*1 Gann Angle.
Moreover silver achieved a new swing high = uptrend confirmation!
By the final break of the first double arc, now the 2nd double arc is activated as the next uptarget. 21.20 to 21.05 is what silver is expected to be able to attain next week. The next several-day consolidation will have to start at the 2nd double arc. A daily close above the 2nd double will activate the main target of this uptrend in that case = 22.05$. Time target for the 22.50 is the first September trading week.
The perfect (because pretty riskless) entry into the current uptrend should be produced by a possible test of the 20.10 horizontal support next week.
Platinum – 3 candle up setup:
During the last two weeks platinum re-tested intensely the first double arc and the support Gann Angle anchored in the chart above. The fourth test of this Support Angle (green circles) on Thursday was finally responsible for the strong rally then. The rebound energy from the Support Angle is monstrous. It’s rarely to be observed. On one single day succeeded the upwards dissolution of the existing consolidation at the highs, to break the resistance of the daily trendline (purple) and to overcome the resistance area of the whole 2nd double arc – an extremely infrequent occurrence! On Friday the next confirmation of the continuation of the uptrend followed...
... the 2nd was finally broken upwards, thus the next double arc in trend direction is activated as the target: 1550$. This price target is supposed to be reached by the end of August.
An entry into the current uptrend will be granted by A) a daily close above the next important horizontal resistance at 1505 or B) a thoroughly possible extended test of the 2nd double arc and the 2*1 Support Angle: 1484-1475.
The performance of silver and platinum are usually harbingers of what is still to come for gold. Concerning the unambiguous buy signals gold is lagging behind just having been able to establish a higher daily low during the last days. The big crack as in silver and platinum is still due. But it is likely to occur within the coming 5 days by virtue of the forerunner function of silver and platinum, if everything goes expectedly…
Gold – 3 candle up setup:
The most important realization of the last days is – as mentioned – the cementation of the higher daily low. In my opinion it’s very positive that gold is now rising up as both analyzed metals were doing. The 1272 is a strong combined daily, weekly and monthly supports! On Wednesday the third test of this important support on daily base took place – green circles. It was successful, inter alia because on Friday succeeded for the first time closing within the lines of the 2nd double arc. This successful test of the 1272 has got particular impacts in the monthly time frame, hence in the medium to the long term.
The consequences are far-reaching. On the one hand, technically August as well as September is not likely to go beneath the 1272!!! But if it does, prices below 1272 during the next 4-6 weeks would be a new, lasting sell signal after which subsequently the actual correction low at 1182.60 will be headed for.
Well, next week at first the daily down trendline (purple) is supposed to break upwards. A daily close above 1322 will confirm that finally. But gold is not going to fly before the first clear close above the upper line of the 2nd double arc. A daily close above 1330 during the next 5 trading days will generate this next important buy signal. Not before that the 1387 = combined daily and weekly resistance will be finally confirmed. A daily close above 1330 during the next 5 days would activate the 1387 at the 3rd double arc resistance till the end of August 2013.
If no close above 1330 succeeds during the next 5 trading days, well, in that case we’ll have to reckon with a new test of the 1272 till the end of August.
To round off the big picture let’s have a look at palladium, the strongest precious metal in 2013. It’s the only one of the 4 precious metals that comprises a tight plus for 2013: +5%. The world-wide surplus in demand prevented palladium this year from being beaten down the way silver and gold were. Target for 2013 is and keeps being the 800$, as analyzed already most extensively in the free GUNNER24 Forecasts of May 12, 2013:
In the monthly chart above you see the 13 year existing monthly resistance, presented in May 2013. It’s likely to be reached this year yet, passing at 800$.
Now we’re newly given a confirmation for reaching the target by the actual daily up setup:
From the June lows a 3 or 5 candle up setup is measurable in the daily time frame. Compared with the other 3 metals this initial impulse is much stronger. Its range comprises about 60$ going from 629$ at the 06/27/2013 low up to the 689$ high of 07/03/2013 – a plus of a 9%. Here again palladium is leading the precious metals. Likewise the following ascent up to the 2nd double arc is proceeding much steeper and thus faster than in case of the other precious metals.
PA # re-tested extensively the 1st double arc after reaching the 2nd double arc bouncing between the 2nd and the 1st double arc to and fro. It’s a strong consolidation formation pointing to rising prices. If this consolidation area is left upwards, it’s likely to be with a strong, steep, fast move. Maybe as early as on Monday PA # will achieve the liberation strike by a mighty buy candle in the style of platinum!
If palladium manages to overcome the short-term orange dotted daily down trendline, it will be likely to go quickly up to the next higher purple dotted daily down trendline = 760$. A daily close above 766 - an important horizontal GUNNER24 Resistance starting from the upper line of the 2nd – would activate the 800$ target in the daily and monthly time frames!
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