If the gold succeeds in ending the entire trading year 2020 little bit above the 1923$, this would be a very rare event, as it would lead to a buy signal on combined yearly & DECADE base!
==> If the gold closes above 1923$ a massive buy signal will be generated for 2021. Accordingly, the next trading year could be another strong uptrend year. Also the 2020 alltime-highs could be overcome - likely by large!! - over the next year!
I would like to prepare you for this next mighty powerful Inflation Signal perhaps in the making because today's issue is the last of the year, and the next GUNNER24 Forecasts won’t be issued before 01/10/2021, since the next two Sunday`s will fall on holidays and experience has shown that, after the turn of the year, most attention must be paid to equities and the Precious Metals sector in order not to miss a vital signal.
Essence of my last published gold forecast was that the risk on gold was to the upside but a week close below 1846$ in course of November should trigger downtrend continuation into 1772$ GUNNER24 Horizontal Support, THE MAJOR backtest rail on a yearly base. The sell trigger kindly worked as predicted:
... and the major important correction target at 1772$ was completed in course of the very last trading day of November.
On this 30th of November, the most traded gold future finished only 3 trading hours below 1772$, and these closings were only very slightly below the 1772$ yearly GUNNER24 Support Horizontal. The absolute gold correction low on 11/30 was cemented at a 1767.2$. From there, an impressive next countertrend on weekly and on daily basis unfolded, what has meanwhile arrived exactly at the price when we last dealt with gold (11/15/2020 – click here on blue to re-read):
Above you find the still best working weekly GUNNER24 Up Setup. I had already explained it on 11/15 for the quite precise last call.
The rally on the weekly chart from 2020 Low into 2020 ATH (alltime-high) lasted exactly 21 Fib number candles, therefore # 1-ATH is a major top and we always have expected a deeper & longer correction to unfold for the rest of 2020 and even beyond. The correction week No. 18 printed so far correction low at 1767.2$ what is the final work off and an obvious very successful backtest of the natural 1772$ major GUNNER24 Backtest Magnet (a yearly backtest magnet horizontal).
This MAJOR downtarget work off allows that the ENTIRE correction correction cycle has ended at # 18-low and the next monthslong bull market cycle is underway now, but at least a 5 to 8 weeks candle long countertrend cycle should be underway what usually should re-test Big 1922$ GUNNER24 Resistance Upmagnet or so.
The very best bull case would be the 1767.2$ final November low finally marks a next major important higher bull market low and here at the 1767.2$ a next monthlslong & sustainable bull market rally leg is getting started with uptarget +2300$ in course of 2021 and beyond... This is a logical stuff outcome when an important yearly natural backtest rail like the 1772$ was the main intention for the correction that began at # 1-ATH!
In any case, and these are very good long-term prospects for the gold bugs, the 1772$ now has morphed to a MAJOR = usually CONCRETE support horizontal on a yearly base.
Means usually A), this rail might be tested again in course of 2021 (and later), and such a test with unusual high odds then should succeed once again!
B) The chances are now huge that this November 30 low marks the next higher important bull market low!, means usually, the 1772$ yearly support horizontal will not be seriously re-tested in the coming year!
However, 2 very important hurdles combined must be overcome to become heavily bullish on gold for the coming weeks into January and that is, on the one hand, the most nearest important bullish price/time magnet at 1911$-1912$ for next week due # 21-Fib number correction week and, on the other hand and of course, the 1922$ yearly upmagnet main resistance horizontal what resides just shy above the 1911$/1912$.
With the help of the above weekly 6/9/13 Candles GUNNER24 Up we recognize that this week candle fired a weekly buy signal as the natural resistance of the upper line of 1st double arc is broken to the upside. This countertrend continuation signal points to that the gold in course of the next trading week again has to test the 2*1 Gann Angle to the T and perhaps even has to test the 1922$ yearly GUNNER24 Horizontal Support in further course of a countertrend cycle.
This week high exactly is at 2*1 Gann Angle from below, so 2*1 Angle remains confirmed and stronger resistance above. For next trading week a striking combined price & time magnet forms.
At 1911$ to 1912$ the determining and by a lower important correction high nicely confirmed dark-red ATH resistance line, the bespoken natural 2*1 Gann Angle resistance unite for the 21st week candle of the correction cycle. This is a triple resistance upmagnet regarding price & the time factor. These tend to have to be worked through first. And secondly, they tend to end and turn the current trend.
Therefore it might be the outcome that this countertrend cycle has to work off the combined yearly and weekly triple backtest magnet at 1911$/1912$ until Christmas Day or the very first trading day after Christmas Day (Monday 28) before the current countertrend cycle reaches an important – but perhaps only short-term – top caused by the 21 Fib number, always possible big turn number, only to have to intensively re-test the 1st double arc (future support) environment over the next few weeks until well into january 2021.
==> IF the gold in course of the next correction week # 21 is able to test the 1911$-1912$ big triple backtest magnet resistance this 21st week of the correction could trigger the next important lower high of the correction at that 1911$-1912$ big main resistance! And well, the odd is at a 70% that the # 21-STRIKING heavy backtest magnet regarding price and time will force the gold into the serious backtest of the 1st double arc.
==> HOWEVER: IF the gold closes 2020 above 1923$ and therefore at same time above the 2*1 Resistance Angle a massive buy signal will be generated for 2021 and in a very first step thereafter the round 2000$ W.D. Gann number rail should be tested back rapidly:
IF the gold future were to close this year at or just above the „old 1923.7$ alltime-high" from 2011, it would simply have to be a really powerful and very sustainable bull signal. Get it?!?!
One that would have a very positive impact on gold for the most part of the coming trading year.
This powerful buy signal could succeed
at the end of 2020 and on December 30, sure. But it currently has a
rather low probability of occurrence of only about 30%. On the one
hand, the natural 1922$ yearly GUNNER24 Resistance Horizontal, that can
be derived mathematically directly from the alltime-high of 2011,
together with the natural 1923.7$ "old" 2011 ATH resistance horizontal,
can be connected horizontally in a crystal-clear manner at the X-symbol
to the natural GUNNER24 Horizontal Resistance what arises from the
highest price of the weekly upper line of 1st double arc what is in a
clear mathemathical resistance relationship to this year's printed
Thus the 1922$ to 1923.7$ combined total is:
1. Still on yearly closing base not overcome „old" alltime-high resistance horizontal. 2. Natural GUNNER24 Resistance Horizontal on yearly base. 3. Natural future resistance horizontal, what can also be derived directly from the low of 2020. 4. DECADE resistance horizontal, as 2020 is the first year of the new DECADE what is now trying to overcome the highest price of the last DECADE. 5. Again, or still a monthly horizontal resistance.
I wish you a Merry Christmas and a Happy New Year!