8/14/2019 Monthly Resistances Are Strong- Gold Implies a Rally Continuation www.GUNNER24.com Issue 02-21-10 http://slidepdf.com/reader/full/monthly-resistances-are-strong-gold-implies-a-rally-continuation-wwwgunner24com 1/10 The monthly resistances are very strong - Gold implies a continuation of the stock market rally As we elaborated last week , the indexes are fighting against their mighty resistances. I mean in the NASDAQ-100, we drew up the 1820 in the GUNNER24 Setup. Well, the last trading week showed the mark exactly at 1823.32. The situation: The primary Gann Angle is determining the actual rally. The first buy target has been reached. The price has not closed within the 2nd double arc; thus, the further buy targets are not activated yet. We know the critical mark in the monthly GUNNER24 Up Setup is positioned at the Friday closing price, as well. At the moment, we are in a 10 day upswing, then really, we will need three days while going up. But if we go on rising like we have done during the last days the high would be to be expected next Wednesday at 1875-1880...a pretty nice ascent the probability of which we will have to analyze. Considering the market simply this way we see the market has produced a higher low.
Transcript
8/14/2019 Monthly Resistances Are Strong- Gold Implies a Rally Continuation www.GUNNER24.com Issue 02-21-10
The monthly resistances are very strong - Gold implies a continuationof the stock market rallyAs we elaborated last week , the indexes are fighting against their mighty resistances. I mean in the NASDAQ-100, we drew up the 1820 in theGUNNER24 Setup. Well, the last trading week showed the mark exactly at 1823.32.
The situation: The primary Gann Angle is determining the actual rally. The first buy target has been reached. The price has not closed within the 2nddouble arc; thus, the further buy targets are not activated yet. We know the critical mark in the monthly GUNNER24 Up Setup is positioned at theFriday closing price, as well. At the moment, we are in a 10 day upswing, then really, we will need three days while going up. But if we go on risinglike we have done during the last days the high would be to be expected next Wednesday at 1875-1880...a pretty nice ascent the probability of whichwe will have to analyze.
Considering the market simply this way we see the market has produced a higher low.
From this setup we can gather the threat of additional resistances on Monday/Tuesday. On Monday, the lower line of the 2nd double arc will be at1835 corresponding with the upper line of the 2nd double arc in the actual 3 Candle GUNNER24 Up.
To compare two indexes always makes sense because that increases the security of the analyses. Maybe the things one index withholds from us areshown by the other.
Here, the Friday candle looks toppy to me. But since the 4 hour time frame makes possible a daily closing price within the 2nd double arc on Mondayor Tuesday respectively thus being able to activate the main target of the entire one year upwards move we will execute the following strategy:
1. On Monday, Tuesday or Wednesday, we will mark the top of the up swing. The upper line of the 2nd double arc is the first obvious target. In thecase of the NDX, it is at 1835. That is where we will cover the half part of our long positions to take along some profits. We will hold the rest because"the trend is your friend".
2. Since the resistances in the actual prices are extremely strong we will always have to take into consideration a stronger retracement on daily basis.See YM # 3 Candle GUNNER24 Up.
3. If we recognize that the 2nd double arc is clearly broken upwards on Monday or Tuesday we will increase our longs because thus the 10700 in theYM # or the 1870 – 1880 in the NDX respectively are activated on daily basis as well.
4. If on Monday, Tuesday or Wednesday a reversal candle is produced we will cover all the long positions seeking the re-entry at the back test of thefirst double arc. The Thursday candle is allowed to produce a reversal candle (normal reaction in the upwards trend!).
5. Within the 4 hour time frame we consider the 1*1 Gann Angle letting go on our longs as long as the 1*1 Gann Angle is broken. At the moment of the obvious break we will turn the position with a very narrow stop in order to trade a possible 3 to 4 day retracement. We will do so because on theone hand the monthly resistances are very strong and we ALWAYS have to take into consideration a change in trend at the 2nd double arc in aGUNNER24 Up Setup whenever the market is in a possible down trend. At least the performance of the Friday candle at the 2nd double arc is pointingthat way. In addition, in the 4 hour GUNNER24 Up Setup there are resistances which may mean that the up swing was finished after ten days. Thatwould be another evidence of a fake move produced by the market.
Gold: Consolidation at the high!
As to the turns, gold is the precursor of the stock markets. At the moment, it is running ahead of the stock markets. Just compare the moment on02/05/2010 when the final low of the last down swing was formed. At first in gold, two hours later in the stock markets.
As well, in the actual Daily GUNNER24 Setup we can realize a much stronger initial impulse than in the stock markets.
The first double arc at 1148 is the first target for long positions when gold closes over 1129 on final price basis. As early as Friday, gold prepared itsbreak out of the first square, rebounding impressively at the 2*1 Gann Angle. For 4 days already, the blue arc has been offering resistance, and theprice might follow downwards (1100 – 1080) on Monday through Tuesday, maybe during the whole week without spoiling the general impression. If the 1080 comes, a long entry at one of the Gann Angles (Rules 18.3 – 18.5: Gann Angel Retracements) will be possible.
The situation: Gold closed within the 3rd double arc thus activating the next target and the next main target (5th double arc.). But that 3rd double arcis offering considerable resistance, like usually. We also know this: Very often after the 3rd double arc has been reached or broken, respectively, azigzag move will follow which can frequently test back the 1*1 Gann Angle (near 1100). It is simply silly. And to decode the price performance in itssurroundings you normally have to work in the lower time frame, so you can elaborate the final break. At the 4th double arc, the target at 1148 is veryclose to Tuesday. If the 3rd double arc were able to maintain its influence of resistance through Monday evening the 1148 might not be on the planbefore the end of the week.
The 1*1 Gann Angles in the stock markets and in gold in the 4 hour time frame deserve supreme attention. They are the lines in the sand. If they are broken downwards significantly the possible retracement on daily basis should begin.
Finally, we will have a look at the pair EUR/USD in the weekly and in the daily GUNNER24 Setups:
In our GUNNER24 Forecast issue of 02/07/2010 , we already had noticed the possible target for the pair. Just two weeks later, the weekly GUNNER24Setup is corresponding with the daily one.
Since two signs in different time frames have emerged there is an opportunity at least for a 3 to 5 day counter trend rally, and possibly much more(1.42). Besides, the Friday low coincided with the 55th day of the down swing. 13 weeks ago, the November high was at 1.5143. For a long entry,we would have to wait and see the first reversal candles in both time frames.
Be prepared!
Eduard Altmann
More GUNNER24 Services - click on the links below to get more information
For your investigations of the published past GUNNER24 Newsletters click here .
Complete GUNNER24 Trading and Forecasting Course - learn to use a forecasting technique that produces 70% winnertrades.
GUNNER24 Forecasting Charting Software
GUNNER24 Trading Setup Examples
Membership - 7 day RISK FREE TRIAL
GUNNER24 Detailed Action Sheet
Commissioned Charting Forecast - 20 to 50-year price forecasts
This e-mail contain confidential and privileged information. If you are not the intended recipient or have received this e-mail in error please notify the sender immediately and destroy this e-mail.GUNNER24.com provides information and education for viewers to use or not when evaluating and making their trading decisions and nothing contained herein or in any subsequent e-mail orcorrespondence or discussion can or should be construed as trading advice or as a recommendation to buy or sell any particular index, currency, commodity or share or to take a position in anymarket. GUNNER24 is not an investment advisory service, nor a registered investment advisor or broker/dealer. Any decision taken by a viewer or a member on whether to trade or invest or not inany particular case is the subscriber's or member s̀ own decision and entirely at his or her own risk and whether made with or without the assistance of a financial adviser. GUNNER24 and itsrepresentatives accept no responsibility for any such decisions made. It is strongly recommended that a position in the market is always accompanied by a stop loss. Trading in indices, currencies,commodities and shares involves risk; money can be both lost and made. Trading shares, indices, currencies and commodities can be done in a variety of ways, such as for example (but not limitedto), buying and selling futures and options in underlying equities, indices, spread or binary betting, direct purchase or CFD's. How you use the information provided by GUNNER24 is purely andexclusively at your own risk.
