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Proper Action
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Gold: Maintain long (1580) position. The resistance we had
at 1625 has been taken out. The resistance level of 1645-1650
has been hit but not taken out. It seems as though gold
is forming a base and consolidating within this area.
Silver: I remain modestly bullish. Silver does in fact seem
to be trading in tandem with gold. Our basic target still remains 30.80;
this is the area where I believe silver could find strong resistance.
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MARKET FORECAST Gary S. Wagner |
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GOLD: If we look at a Fibonacci retracement from this recent low to recent high, the low of 1620 does fall below a 23% retracement. That being said, in no way do I believe that that completed any kind of a minor corrective wave. That would still put our intermediate count at wave one; however, we need to see how this unfolds. In the interim we will maintain our long position from 1580 and look to add to this position upon a defined and substantial breakout to the upside. We will look to pull profits on this position if we see signs of weakness develop in the market and if gold prices are unable to break above this 1645-50 price point.
SILVER: On a weekly chart, as well as our daily charts, silver looks to be following gold's lead and trading higher with defined rallies. Look at gold prices for our cue to an indication for the direction of silver. 
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Copyright (c) 2011 Wagner Financial Group
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