To support a strong up move in silver, gold should be performing as well.
Reasons why gold will be performing and could retest August highs on the last week of February, and after making a pull back into early March creating a cup and handle pattern - storm to 2500 by April:
1. During March - November period gold has made a 9 month long picture perfect bull flag. Shows us that the longer term trend is up and buying power is larger than the selling power.
2. All cycles are up and as long as we don't close below 1807 weekly basis - the up move will continue.
3. A move to recent highs at around 2050 (if occurs) will be stopped by the previous support line, a double top against the high and the smallest cycle being down for about one week at that period. Now as I remind you - now cycles are up and unless gold shows weakness closing below 1807 - we are long. To change the monthly trend - gold has to close below 1764 monthly basis.
4. A move to around 2500 will be +37.5% from 1764 - bull flag low and cycle low at that point. Division of the dollar into 8 parts gives us natural points of support and resistance and we use this information to figure out a few facts. Firstly, percentage terms - 37.5% is 3/8 of 100. Meaning that we use the lows and highs - add or subtract - 1/8, 2/8, 3/8 etc. (i.e 12.5%, 25%, 37,5% etc.) and as a result get points where potential resistance/support will be. Secondly, we use the division of the dollar into eighths to get the nominal price resistance, once we go above 1 dollar - natural points of resistance become 1.125, 1.25, 1.375, 1.5, 1.625, 1.75, 1.875, 2, 2.125, 2.25, 2.375, 2.5 (or 2500). I hope this makes sense and you will try applying this method and prove to yourself that it works in most cases.
5. The pink trend line is the price projection taken at an angle which is = to the angle of the up leg inside the bull flag. To get the date where it will stop the up move we use the information given by cycles and observe that by around mid April where cycles top for some time in both gold and silver the trend line gives a point at around 2500 - natural point of resistance given by the previous rule.
6. Stay tuned for the XAUXAG update where I will combine my price targets for gold and silver and their cycles dates to check if the ratio gives us the same result according to its own cycles and points of resistance.
Please remember futures trading involves a substantial risk of loss and is not suitable for all investors.
Reasons why gold will be performing and could retest August highs on the last week of February, and after making a pull back into early March creating a cup and handle pattern - storm to 2500 by April:
1. During March - November period gold has made a 9 month long picture perfect bull flag. Shows us that the longer term trend is up and buying power is larger than the selling power.
2. All cycles are up and as long as we don't close below 1807 weekly basis - the up move will continue.
3. A move to recent highs at around 2050 (if occurs) will be stopped by the previous support line, a double top against the high and the smallest cycle being down for about one week at that period. Now as I remind you - now cycles are up and unless gold shows weakness closing below 1807 - we are long. To change the monthly trend - gold has to close below 1764 monthly basis.
4. A move to around 2500 will be +37.5% from 1764 - bull flag low and cycle low at that point. Division of the dollar into 8 parts gives us natural points of support and resistance and we use this information to figure out a few facts. Firstly, percentage terms - 37.5% is 3/8 of 100. Meaning that we use the lows and highs - add or subtract - 1/8, 2/8, 3/8 etc. (i.e 12.5%, 25%, 37,5% etc.) and as a result get points where potential resistance/support will be. Secondly, we use the division of the dollar into eighths to get the nominal price resistance, once we go above 1 dollar - natural points of resistance become 1.125, 1.25, 1.375, 1.5, 1.625, 1.75, 1.875, 2, 2.125, 2.25, 2.375, 2.5 (or 2500). I hope this makes sense and you will try applying this method and prove to yourself that it works in most cases.
5. The pink trend line is the price projection taken at an angle which is = to the angle of the up leg inside the bull flag. To get the date where it will stop the up move we use the information given by cycles and observe that by around mid April where cycles top for some time in both gold and silver the trend line gives a point at around 2500 - natural point of resistance given by the previous rule.
6. Stay tuned for the XAUXAG update where I will combine my price targets for gold and silver and their cycles dates to check if the ratio gives us the same result according to its own cycles and points of resistance.
Please remember futures trading involves a substantial risk of loss and is not suitable for all investors.
Comment:
As long as there is no close below 1807 weekly basis - long signal continues.
Comment:
Crazy times we are livng in. One thng I can tell you. Be long. But be careful. Futures trading involves a substantial risk of loss and is not suitable for all investors. They want you to sell it to them and they hunt your stops.
Comment:
Check the fresh updates please!
